WIOA State Plan Common Elements

(II)(A)(1)(A)(i) Existing Demand Industry Sectors and Occupations

A majority of the industries targeted for recruitment, retention, and renewal are manufacturing industries. Three of those targeted industries, Aerospace, Automotive, and Metal Manufacturing, which includes ship building, are in the transportation manufacturing sector. At the height of the recession, the transportation manufacturing declined to 45,692 employed, but since that time has grown over 31 percent, with automotive parts manufacturing growing the most at 78 percent since 2010. Ship and boat building had a slight setback in 2010, decreasing from an employment of 3,515 in 2009 to 3,018 in 2010. It quickly recovered to 3,640 in 2011 and continues to increase every year. Top Aerospace cluster occupations for 2013 in Alabama are shown in Table 1. Top occupations in Alabama in 2013 for the Automotive cluster are shown in Table 2. Top occupations in Alabama in 2013 in the Sheet Metal and Ship Building cluster are shown in Table 3. (Note: Sources for all tables are the 2014 release of the Occupational Employment Statistics (OES) Report in cooperation with the Bureau of Labor Statistics; wage data aged using the most current Employment cost Index (ECI) factors. Annual wage information rounded to the nearest whole dollar. Data reflects wages across all industries, not specifically to respective cluster.)

(II)(A)(1)(A)(i) Existing Demand Industry Sectors and Occupations (continued)Two industries, Bioscience and Chemicals, are also being targeted through the state’s strategic plan, Accelerate Alabama, introduced by Governor Robert Bentley in an executive order in July 2011. While the total employment in the bioscience cluster has experienced a downturn since 2000, the cluster has grown over 14 percent since 2010, and there have been announcements of 335 new jobs to come. Most of those jobs announced are in pharmaceutical and medicine manufacturing, a field that has experienced a steady growth in employment of 473.0 percent since 2000, and has continued to grow during the recession years. The Chemicals cluster also experienced a downturn since 2000, but has grown slightly since the recession. A very small portion of this cluster (soap, cleaning compound, and toiletry manufacturing) has grown 154 percent since 2000. Additionally, since 2014, announcements for 200 new jobs in paint, coating, and adhesive manufacturing have been made. Table 4 describes Alabama’s top occupations in the Bioscience Cluster for 2013. Table 5 describes Alabama’s top occupations in the Chemicals Cluster in 2013.

(II)(A)(1)(A)(i) Existing Demand Industry Sectors and Occupations (continued)Two more targeted clusters in Accelerate Alabama were Distribution Centers and Corporate Operations. While Distribution, like most industries, experienced a downturn during the recession, it has steadily increased in employment since 2010. Warehousing, a component of Distribution Centers, has especially grown, increasing of nearly 47 percent since 2010, with more than 1,000 additional jobs announced since 2014 Additionally, approximately 140 new jobs have been announced for general freight trucking. Corporate Operations as a cluster has been growing at a steady pace since 2000. From 2000 to 2014 this cluster has grown 60 percent, with nearly 1,300 new jobs announced. Table 6 shows the top occupations in Alabama in 2013 in the Corporate Operations Cluster. Table 7 describes the top occupations in Alabama in 2013 in the Distribution Cluster.

Alabama’s strategic plan for economic development (Accelerate Alabama) also targeted industries that are associated with Enabling Technology, due to the increased use of nanotechnology and robotics used in many of the large automotive production plants in Alabama and surrounding states. To show the Alabama’s commitment to prepare the workforce for these types of jobs, AIDT and robotics industry leaders collaborated to build a robotics technology park. The park consists of three training facilities, each targeted to a specific industry need. While the industries associated with this cluster show minimal growth thus far, nearly 1,000 additional jobs have recently (since 2014) been announced for the state. Table 8 shows the top occupations in Alabama in 2013 in the Enabling Technology cluster.

(II)(A)(1)(A)(i) Existing Demand Industry Sectors and Occupations (continued)Information Technology, another targeted industry cluster, overlaps the Enabling Technology cluster somewhat. The largest industry in the Information Technology cluster is business support services, a field that has grown at a steady pace, even during the recession, up 63 percent since 2000. Additionally, over 500 new jobs have been announced in this cluster since 2014. The top occupations in the Information Technology cluster in Alabama in 2013 are shown in Table 9.

The final two clusters targeted in Accelerate Alabama are historically a large part of the state’s economy; Food Products and Forest Products. In 2012 Alabama’s agriculture industry produced cash receipts of $5.35 billion. In the U.S. the state ranks second in peanut production, third in aquaculture, and fourth in poultry broilers. The state also ranks tenth in the U.S. in both cotton and chicken/egg production. According to the Alabama Forestry Commission, Alabama’s forests generate over $21 billion in timber production and processing revenue. The state ranks third in timberland acreage in the 48 contiguous states, behind only Georgia and Oregon. According to a 2013 report published by Auburn University (February 2013), Agriculture, forestry and their related industries account for 41 percent of Alabama’s $174 billion economy and provide 22 percent of all jobs in the state. The study has determined that agriculture, forestry, and related industries generate 8 jobs per million dollars of sales. This report identified over 90 industry sectors that are related to agriculture and forestry production, including food and kindred product distribution sectors, like wholesalers, food stores, and restaurants. For these reasons, it is beneficial to the economy of the state to continue to support and pursue advancements in production and research for these industries. Table 10 describes the top occupations in the Food Products Cluster for 2013. Table 11 describes the top occupations in the Forest Products Cluster in Alabama for 2013.

(II)(A)(1)(A)(i) Existing Demand Industry Sectors and Occupations (continued)

One industry sector that was not addressed in the Accelerate Alabama plan is Healthcare. The fact that the baby boomers are approaching retirement age, and also that people are living longer, is beginning to have a large impact on the healthcare system. Additionally, there are many more specialized jobs in healthcare than in the past, due to the fact that healthcare costs have risen in tandem with the demand for healthcare services. While hospitals have experienced small but steady growth every year since 2000, most of the growth in healthcare employment has come from industries that provide more specialized care. Industries such as outpatient care centers, home health care services, and specialized health practitioners have doubled in employment since 2000. In addition employment in residential disability, mental health, and substance abuse facilities has grown 226 percent since 2000. Continuing care retirement and assisted living facilities have also doubled in employment. Furthermore, as the population ages, so does the workforce in the healthcare industry. In Alabama in 2014, 21 percent of the healthcare workforce was over the age of 55. There is a projection of nearly 60,000 new jobs in healthcare for the period of 2012–2022. That projection combined with an increasing number of workers approaching retirement, the demand for healthcare employees is very high in the state. Table 12 shows the top occupations in the Healthcare cluster in Alabama in 2013.

(I)(A)(1) (A) (ii) Emerging Demand Industry Sectors and Occupations Alabama’s strategic plan for economic development is also targeting industries that are associated with Enabling Technology, due to the increased use of nanotechnology and robotics used in many of the large automotive production plants in Alabama and surrounding states. To show the dedication to prepare the workforce for these types of jobs, AIDT and robotics industry leaders across the nation collaborated to build the robotics technology park. The park consists of three training facilities, each targeted to a specific industry need. While the industries associated with this cluster show minimal growth thus far, nearly 1,000 additional jobs have recently been announced for the state. Cyber Securityis an emerging industry another cluster which overlaps the Enabling Technology cluster. Huntsville, Alabama is home to the second largest research park in the United States, Cummings Research Park, with over 400 companies that include Fortune 500 companies, local and international high–tech enterprises, and US space and defense agencies. It also includes a thriving business incubator and competitive higher education institutions. Cyber security is most certainly an emerging sector in this state, and in the entire country. Table 14 lists Alabama’s targeted industries and occupations by Workforce Development Regions.

(I)(A)(1) (A) (ii) Emerging Demand Industry Sectors and Occupations Table 15 below describes the top ten knowledge, skills and abilities needed by employee in demand occupations in the targeted industry clusters. Table 15. Top 10 KSAs for Demand Occupations in Targeted Industry Clusters

Source: Alabama Department of Labor, Labor Market Information Division. O*Net OnLine. (I) (A) (1) (iii) Employers’ Employment Needs In 2012, only 30 percent of jobs were in occupations that typically require postsecondary education for entry. Within this group, jobs in occupations that require a Bachelor’s degree for entry held the largest share at 15 percent. Occupations requiring a high school diploma or equivalent, and less than high school, made up 70 percent of jobs in 2012. Occupations with the highest percentage growth typically require a form of postsecondary education, with associate’s degree occupations holding the highest share at 18.9 percent. All occupations in Alabama requiring postsecondary education are projected to grow faster than average, 10.4 percent. At 8.7 percent, occupations requiring less than high school show the slowest growth over the projection period. Over the past five years there have been many reports all over the country about skills gaps. More importantly, the emphasis has been on employees’ lack of soft skills. Alabama is no different. Employers all over the state declare that they cannot find employees with adequate skills. The Alabama Department of Labor, Labor Market Information Division decided that the state needed current data to illustrate the employers’ concerns in these areas. As a result, a skills survey was conducted and published in 2013. Many of the employers voicing these concerns were in manufacturing and construction industries. So, for this study, the decision was made to survey employers in manufacturing, construction and utilities. A sample of 6,926 employers was randomly selected by the Bureau of Labor Statistics. Over 5,000 employers in the three industries responded to the survey. The survey instrument included three categories of questions: Recruitment Challenges; Skills Gaps Identified; and Training and future needs. Employers in the sample who had hired within the past two years were asked the level of difficulty they had in finding candidates with adequate basic skills. A majority of those stated that it was either extremely or moderately difficult. The responses also indicated that it was most difficult to hire people with experience in the occupation, but hundreds of employers said it was most difficult to hire for entry–level positions. Over 1,300 employers indicated that the number one reason for rejecting applications was that the prospective employee did not pass a drug screen, surpassing lack of work experience as a factor for not hiring an applicant. When given the opportunity to list other reasons, employers indicated (1) lack of driver’s license or reliable transportation, (2) lack of required certification, (3) attendance history, (4) employment history, (5) failed employment skills testing, and (6) other reasons, most relating to a lack of soft skills. A list of soft skills and a list of technical skills were provided, so the employers could choose all skills gaps identified in existing staff. Of the soft skills, across all industries and all areas, poor attendance was the overwhelming top choice. Others chosen at high levels were time management deficits, inability to following directions, lack of critical thinking skills, and poor communication. Gaps identified in technical skills often varied by industry. In a majority of the manufacturing industries, the top technical gaps were machining skills, welding skills, and electrical knowledge. In utilities, the number one technical skill gap was in the area of math. Utilities employers also ranked engineering and electrical deficits at high levels. The selections from construction companies varied depending on the type of work that was done. Some of the top skill gaps identified were in the areas of carpentry, blueprint reading, industrial experience, equipment operating, electrical, and welding. When employers were asked what area of training would be the most valuable to improve the workforce, choosing from soft skills, occupational experience, or education, the majority ranked soft skills as most valuable. Respondents also were given the opportunity to list future technologies that would require training. Employers listed mobile technology, robotics, computer numerical control (CNC) technology, manufacturing automation technology, and general computer advancements as the top five technologies. The survey revealed that a majority of employers do not presently use training resources provided to them by various Alabama workforce development partners. A majority of employers conduct their own training on the job.