Overview of Project Methodology

1. Priming the Talent Pipeline: Oregon Future Workforce Needs AnalysisInterim Findingsand Draft RecommendationsDecember 2007

2. General Approach Inform understandingOregon’s future workforce needs by building upon Oregon’s cluster-based initiatives driven by industry employment analysis and augment with an understanding of technology competencies found within and across Oregon’s industry base Overview of Project Methodology Alignment with Educ & Trng Resources Assessment of Oregon Industry Core Competencies Analysis of Gaps Identify Workforce Needs Map to state occup forecast & industry & trade association reports Addressing Gaps Guidance from Oregon Cluster Organizations

3. Starting Point: How to Identify Drivers of Oregon’s Economic Future • To consider the likely future drivers of Oregon’s economic growth and workforce demand, this study breaks new ground in integrating two perspectives: Industry Technology Competency Analysis to look more closely at a state’s comparative industry advantages from a technology perspective to learn where “you have the know-how to grow”: • Hamel and Prahalad in “Competing for the Future,” define a competency as “a bundle of skills and technologies.” From a state workforce and economic development perspective, core competencies represent a “critical mass” of know-how. • It is from industry technology competencies that gaining a position in emerging technologies can best be realized. Traded Industry SectorAnalysis using industry employment data that reflect an understanding of “where the Oregon’s economy has been”: • Important to focus on those industries that serve export-oriented or “traded” markets and bring new wealth to the state’s economy as opposed to only serving local needs • Consider broader clusters of industries that share inter-related activities – often linked by serving common markets or through supply-chain relationships Intersection of Industry Employment Strengths and Industry Technology Competencies Leads to Identifying Technology & Market Platforms

4. A Closer Look at Industry Market Specializations Found within the Oregon Traded Industry Sectors • More detailed analysis of Oregon’s industry base suggests specific “markets” where Oregon stands out – based on degree of industry employment specialization • Oregon highly specialized in 27 industry markets representing 9 out of the 12 traded industry sectors • No highly specialized industries found within Business Services; Logistics & Distribution; or Medical Products Source: Battelle analysis of BLS, QCEW employment data.

5. Oregon’s Current Position in Major Occupational Groupings Under Consideration, 2006 Discussion of Oregon’s “Mega-Level” Occupational Trends: • A specialized and growing engineering technician workforce in Oregon • A production workforce that is far outpacing the U.S. in recent growth • A computer specialist workforce that is keeping pace with the U.S. • An engineering workforce that is growing well below the U.S. average Source: Battelle analysis of Oregon Employment Dept. Occupational Employment Data, 2002 & 2006.

6. Detailed Occupational Composition: Oregon’s Computer-related & Engineering Workforce Computer-related Occupations Oregon Specializations: • Computer Support (LQ is 1.16) • Computer Specialists, All Other (LQ is 2.18) Projected High Demand* Occupations (Total Openings 2006-16): • Computer Support Specialists (2,181) • Computer Software Engineers, Applications (1,675) • Network & Computer Systems Admin. (1,405) • Computer Programmers (1,322) • Computer Specialists, All Other (1,262) Engineering Occupations Oregon Specializations: • Computer Hardware (LQ is 3.27) • Electronics (LQ is 1.20) • Materials (LQ is 1.48) Projected High Demand Occupations (Total Openings 2006-16): • Mechanical (1,108) • Civil (985) • Industrial (776) • Electronics (610) • Computer Hardware (535) *High demand occupations are those with the greatest number of projected job openings overall, 2006-16 (both growth and replacement openings). Note: only those engineering occupations with >500 jobs are shown in the pie chart.

7. Specialized occupations today in Wood Products Identified Oregon Workforce Issues Serious problems in hiring rural logging workers due to extensive drug use among applicants (lack of drug-free applicants) Workforce gaps in basic job skills (read, follow directions, perform simple computer/computational skills) Forestry programs at high schools, community colleges have been cut; companies now rely on on-the-job training—significant “PR” work necessary to bring worker pipeline back online (OFRI is heavily engaged in this effort) Pipeline challenges heightened by an existing workforce that is aging Oregon Workforce Position in Wood and Forest Products

8. New Job Growth in Oregon is Projected to be Strongest in Computer-Related Occupations, with Steady Growth in Engineers, Technicians and Production Workers Source: Oregon Employment Department, Occupational Projections 2006-16.

9. But Job Demand Also Reflects Need for Replacement Workers … Much Larger than New Job Growth Across Occupational Groups • Across major occupational groups, the Oregon Employment Dept. projects that future job openings will largely be due to needs for replacement workers; highlights the demographic challenges facing production workers in particular • Though not expected to grow the fastest, Production occupations will require the most workers annually with the vast majority as replacements Source: Oregon Employment Department, Occupational Projections 2006-16.