Mapping Career Ladders in the Aerospace Industry Workforce Solutions: Partnering and Career Mapping on Long Island

1. Mapping Career Ladders in the Aerospace Industry Workforce Solutions: Partnering and Career Mapping on Long Island Workforce New York Long Island Regional Business Services Team

2. Workforce New York Long Island Business Services TeamMapping Career Ladders in the Aerospace Industry Member Organizations: New York State Department of Labor Division of Employment Services New York State Department of Labor Division of Research and Statistics Town of Hempstead Workforce Investment Board (HempsteadWorks) Workforce Investment Board of the Oyster Bay Consortium (Oyster Bay Works) Suffolk County Workforce Investment Board (Suffolk County Department of Labor)

3. Long Island A two county PMSA East of New York City Total population: 2.8 million Known as the Cradle of Aviation The region lost 50,000 defense-related manufacturing jobs from 1986 to 2000 Many in aircraft but also in related areas such as electronics and search and navigation equipment.

4. Workforce Development for High Growth Industries Advanced Manufacturing & Aerospace Industry Workforce Solutions Engineering design, electronics, machinery, fabricated metals and aircraft parts manufacturers saw a buildup in contracts and work orders in 2002 but faced key skill and workforce shortages. A collaborative regional business services team was formed with the three local WIBS and led by the regional NY State Employment Services Business Services Team. This team formed a broad set of alliances with economic development entities, technology resource entities, industry associations and university and community college training partners to address these needs and expand job creation in manufacturing. Identify a promising practice in mapping careers in the aerospace industry. Workforce New York Long Island Regional Business Services Team Mapping Careers

5. Machinist: Is it programming or metal bending and what happens with the shift to composite materials? The last machinist training program closed on Long Island at the end of the 1980’s.

6. Project • Mapping Careers in the Aerospace Industry • Funded by a grant from State Workforce Investment Board using WIA Statewide Activities funds

7. Project Development Process • NYSDOL Workforce New York Request For Qualifications (RFQ 25-J) • Six consultants qualified for a Future Bid • NYSDOL Workforce RFQ 25-J Future Bid • Town of Hempstead (TOH) Local Workforce Investment Board (LWIB) submission of Electronic Project Request Form for Career Mapping services of the aerospace industry on behalf of the Long Business Services Team • NYSDOL award of consultant contracts

8. Project Request/Statement of Need • The Long Island Aerospace industry is a major contributor to the New York State economy • The growth of this critical industry depends on employee skills development because of the expected job growth in aerospace over the next ten years • Growth will be potentially limited by the ability to hire new employees, with the required skills • Rapid technological advances will require incumbent worker education/training

9. Career Mapping Consultants (Selected by Workforce New York) • Aerospace and Defense Diversification Alliance in Peacetime Transition (ADDAPT) (A team of ADDAPT, the Cypress Group and Cooperating Executives Organization) • Stony Brook Research Foundation (SBRF) Stony Brook campus of the State University of New York (SUNY)

10. There is a broadly held, erroneous perception that Jobs in manufacturing are a dead end, not very interesting career.Career Mapping in Aerospace and advanced Manufacturing seeks to identify and publicize good jobs and ladders to further success.Also to help companies better understand and identify the skill and organization structure required by a competitive manufacturing company.There is a vision that transparency in human capital markets will help employees and businesses maximize their value.

11. Project Management Plan • Meetings of the Career Mapping Subcommittee will be convened on a regular basis to evaluate the progress of the Project and to provide direction to the ADDAPT and SBRF consultants for future activities • Copies of all reports submitted by the consultants to the NYSDOL Workforce Development and Training Division will be simultaneously distributed to the Subcommittee representatives • These reports, along with additional scanning information, will guide the Subcommittee in its efforts to support and adjust the Project, as needed • The Subcommittee will report the progress of the Project to the Business Services Team, the Long Island Consortium for Workforce Development, the LWIBS and other appropriate organizations

12. Project Management Plan (Continued) • Career Mapping will be included in the portfolio of products offered to business by the three LWIBS and the Business Services Team • Information regarding the services available through the project will be included in local workforce investment system marketing material, both in hard copy and on-line • Information sessions for businesses and business organizations will be convened at local One-Stop Centers, at LWIB meetings and at other appropriate venues, in a manner that establishes a clear connection between the Project and the workforce investment system

13. Project Methodology • Consolidate in Database: • - Organization Structure • Job Descriptions • & Associated Salary • - Skill requirements • - Training Requirements • Provide individual and • consolidated reports • to the companies Participating Company Participating Company • Industry Information • Career Ladders • Job Descriptions & Salary Ranges • - Training Requirements Participating Company Participating Company ADDAPT / CEO / Cypress Group / Stony Brook 1.0 - 3

14. Steps in the development are: • 1.    Determine the data elements • 2.    Establish data relationships • 3.    Define the Data Model • 4.   Design the architecture and Schematic • 5.    Generate input screens • 6.    Develop reporting screens • 7.    Develop output reports • 8.    Test program operation • 9.    Test functionality with pilot data • 10.  Modify as needed • 11.  Production Test • 12.  Load full data set • 13.  Maintenance and modification

20. Targeted Aerospace Industry Clusters • Engineering Design • Engineering Services • Manufacturing (Mechatronics) • Commodities/Special Processes • Information Technology

21. Findings: Industry Training Needs • There is a critical need to develop and facilitate a training facility on Long Island to train “hands on” workers in the metal fabrication trades • Incumbent worker training in blue print reading • Industry specific training for incumbent workers in management skills, Lean Manufacturing process improvement training and ISO 9000 training prior to company certification • Specialized company training where training curriculum and associated resources are difficult to identify in the local academic and private training providers • This training is only available from the suppliers of the specialized and technically sophisticated capital equipment and Manufacturing/Enterprise Resource Planning systems (MRP/ERP)

22. These changes will have a dramatic impact on both the incumbent work force and the required improvements in training and the skills that will be required of entry level employees from K-12 public education system and graduates of universities and colleges Examples: • Business and financial practices associated with international trade • Must speak several languages • Understanding of Export Administration Regulations (EAR), International Traffic and Arms Regulations (ITAR) regulations and documentation required for US export compliance

23. Short Term Assess 24 companies to identify their current organizational structure. Define each company’s business profile such as products & services, yearly sales, number of employees, facilities, primary customers and strategic objectives. Identify commonality (Composite organizational structure) Define Aerospace career ladder jobs and their qualifications. Define training needs for the companies and their career ladders Assist DOL with categories of jobs and career paths for job placement Make job definitions more consistent Increase skilled workforce based on needs of industry Identify potential training funding opportunities Long Term Use the results of the study to identify broader improvements in training programs Feedback needed industry skills to universities and colleges Feedback results of skills needed to K-12 Suggest changes to curriculum so students are better prepared to enter the workforce with skills needed by employers Benefit employers, incumbent workers, potential new hires, & students Evaluate the impact of the technology driven changes expected in the next five years and the resulting new skills required. The consultants had an aggressive agenda to meet the Goals of the Project ADDAPT / CEO / Cypress Group / Stony Brook

24. Company Benefits • Study and documentation of Organization Structure • Job Descriptions Standardized and Referenced to ONET Categories • Allows Comparisons and Benchmarking • Training Requirements Recommendations • Identify Potential Training Funding Sources at the Federal, State and Local Levels. ADDAPT / CEO / Cypress Group / Stony Brook

25. Selection of Candidate Companies for Participation in Mapping Career Ladder Project Researched and generated a list of over 500 Long Island aerospace companies.  • Selected the 24 companies for participation in the project and identified several back up companies. Data Collection Method Gathered company information such as products, customers, facilities description, organization chart, yearly sales, and the company’s strategic plan and assessment of the business environment for the next five years, in initial on-site interviews. • Identified the management personnel primarily responsible for personnel, training, and career advancement within the companies. • Typically: - Executive Management (President, CEO, General Manager) Controller (CFO) - Sales and Marketing - Engineering - Operations - Quality - Information Technology - Human Resources •   Developed survey forms to insure consistency of data collected •   Conducted interviews with 196 people. 1.0 - 6

28. Data Base Development  The volume of data necessitated creation of a database to assist job and career ladder analysis for the 24 companies participating in the project. Data entered for each company:  Job Titles • Job Descriptions • Responsibilities • Skills Needed • Educational Requirements • Experience • Salary Ranges • Training needs to achieve competitiveness and growth  • Typical Source of Candidates (What jobs did they come from?) • Promotional Potential (Career Ladders) 1.0 - 8

29. Composite Company A “Composite” company was developed to represent the relationships between organizational entities in a typical LI aerospace company doing business with both the US DOD and the major producers of commercial airliners. This “Composite” company has a range 50 to 200 employees and yearly sales of $7M to $30M (see company organization chart). Training Requirements Recommendations • Each of the 24 companies participating in the project received a written training requirements recommendation based on the analysis of the data collected during the on-site interviews conducted by ADDAPT and SBRF. Training requirements recommendations are for both short term (one year) and long term (two through five years).

30. Technology Driven Changes Expected in the Next Five Years and their Impact on Workforce Skills Required 4.1 Industry change is driven by technology and new business methods in the global aerospace industry. Major manufacturers are no longer buying just component parts or just machined components, they are buying major subassemblies. Small manufacturers must grow to be “mini” prime contractors or be acquired by larger companies. These changes will result in the need for completely different manufacturing processes and management techniques that the typical small company does not currently have resulting in extensive re-training of the incumbent work force. Major military and commercial prime contractors such as Boeing and Lockheed Martin will be competing with the European Aerospace companies for major US military contracts for the first time. These contractors typically involve consortiums of foreign and US contractors who must work together resulting in extensive training requirements to address the difference in cultures, language, business practices and the complexities of the US regulations including international trade.

31. Changes and Impact (continued) • These changes will have a dramatic impact on both the incumbent work force and the improvements in training and the skills that will be required of entry level employees from K-12 public education system and graduates of universities and colleges. Examples:  • The latest manufacturing techniques, such as the Lean Manufacturing Principles, must be implemented in order to increase productivity • Business and financial practices associated with international trade • Must speak several languages • Understanding of Export Administration Regulations (EAR), ITAR regulations and documentation required for US export compliance • Proficiency with both the design & manufacturing of aircraft structures using composite materials Small manufacturers who must grow to be “mini” prime contractors will require:  4.0 - 2

32. Changes and Impact (continued) • Purchasing methods upgraded by new training. A larger number of suppliers must be developed and managed. • ISO quality systems addressing new processes and their procedures. Additional training will be needed both within the company and with their suppliers. • Cash management as a critical requirement. • An approach to applying Lean Manufacturing techniques will now take on different processes such as Supply Chain Management • A higher level of Marketing capability. 4.0 - 3

33. ECONOMIC TRENDS IN THE LONG ISLAND AEROSPACE INDUSTRY The aerospace industry on Long Island experienced a dramatic business reduction from 1986 through 1995 as a result of reductions in defense contracts. The industry experienced a drop in yearly orders of $5 billion to $1 billion during this period. Employment was reduced from 100,000 to 23,000 employees. Many people changed careers during the defense diversification initiative causing the loss of skilled aerospace employees. Replenishment of the skill loss through training is essential. There are approximately 25,000 employees currently working in the Long Island aerospace industry with 70% working for smaller companies (i.e., less than 200 employees). The overall business trend in the Long Island aerospace industry are: • Increasing orders from the Department of Defense (DOD), the military prime contractors and the commercial airline OEMs (Boeing, Airbus, Bombardier, and Embraer) is expected for the next eight (8) years. • DOD orders will be focused on military operational needs such as spare parts, upgrades of existing weapons systems and replenishment of expendables. These orders will benefit the smaller companies. • Orders received by small aerospace companies for production of major components, assemblies and systems for commercial aerospace prime contractors are also expanding because these prime contractors are depending on the smaller aerospace contractors to help contain the costs of commercial airliners by sharing a larger percent of product costs and the associated risks.

34. TRENDS (continued) The Long Island aerospace industry is expected to grow by 3,000 people over the next three years. As a further result of this anticipated increase in employment, ADDAPT, in partnership with the NYS Dept. of Labor, has been working on determining the near-term training requirements for both incumbent and newly hired employees that will be required to meet this demand for increased employment. We have evaluated the longer-term trends that will be driven by the anticipated rapid changes caused by major advances in aerospace technology. Based on the on-site interviews and assessments conducted by ADDAPT and SBRF of 24 companies, we see a critical demand for training incumbent aerospace employees and major problems associated with hiring new qualified employees as follows:

35. TRENDS (continued) Every company complains about the qualifications of high school graduates (K-12 students) and vocational school graduates for entry level jobs in the aerospace industry. • Verbal & written communication skills are a major problem with both new and existing employees. This is exacerbated by the influx of recent immigrants into the Long Island aerospace industry where English as a second language is a major training requirement. • Ability to work in a “team” environment is lacking (poor interpersonal skills). • Understanding of basic math and science is a major shortcoming of both high school graduates and many college graduates entering this industry. • There is a critical need to develop and facilitate a training facility on Long Island to train “hands on” workers in the metal fabrication trades and electronics assembly (Mechatronics). 2.0 - 2

36. TRENDS (continued) • There is a major demand by the aerospace companies for incumbent worker training in blue print reading and CAD/CAM. (Computer Aided Design / Computer Aided Manufacturing) • There is a major demand for industry specific training for incumbent workers such as management skills training, lean manufacturing process improvement training and ISO 9000 training prior to company certification. The good news is that it appears that both academia and private trainers can meet this demand. • There is also a major demand for specialized company training where training curriculum and associated resources are difficult to identify in the local academic and private training providers. This training is only available from the suppliers of the specialized and technically sophisticated capital equipment and Manufacturing Requirements Planning/Enterprise Resource Planning systems (MRP/ERP) that are prevalent in the aerospace and other (cont’d)

37. TRENDS (continued) • industries in order to remain competitive. These types of specialized training are predominately “hands on” training associated with the application of the specialized production/inspection capital equipment and MRP/ERP systems to the unique requirements of each individual company. • Although there are many trainers available to provide the principles of lean manufacturing and process improvements, there is a lack of training resources that can apply these principles to the unique processes on the factory floor of each individual company.

38. Career Ladder Path Steps Job Title/Name(s) Step 1 Step 2 President – N.A. Owner CEO/Managing Director – N.A. Owner Executive Vice President – CEO MIS – N.A. – Part Time Consultant Operations Manager: Executive VP CEO Forman – Operations Mgr. Executive VP Lead Person – (2 people) Forman Operations Mgr. Welder – (5 people) Lead Person or QA Inspector Foreman Assembler – (3 people) Lead Person Forman Machinist – Lead Person or QA Inspector Forman Inventory Control – Lead Person Forman Shipping/Receiving Clerk – Inventory Control Lead Person Quality Assurance Supervisor – Ops. Mgr. Executive VP Quality Assurance Inspection (2 people) QA Supervisor Operations Mgr Estimator – Ops. Mgr. Executive VP Purchasing Agent – Procurement Manager Materials Mgr. Project Coordinator – Estimator Ops Mgr. Accts. Payable/Rec. Clerk – Accounting Supervisor Controller Accts. Rec. Clerk – Accounting Supervisor Controller Career Ladder Paths – Company # 8 3.0 - 7

41. Workforce New York Long Island Business Services Team Vision Our strategic, public-private partnership will continually improve the quality of the Long Island workforce, business climate and economy. Through regional coordination, we will: • Create an enhanced business perception of the publicly funded workforce investment system • Provide multiple access points where businesses can obtain coordinated assistance in recruiting, training and developing workers • Maintain a customer-friendly process for leveraging available resources from a variety of funding streams in response to business, employment, community and economic development needs

42. Workforce New York Long Island Business Services Team Mission • Develop a strategic, on-going approach to the delivery of business services that combines resources and remains flexible in its ability to respond to the business customer • Plan and implement business services initiatives that help hire, train, educate, upgrade and retain skilled workers • Collaborate to identify and access grant funds that will assist businesses, develop our local workforce and strengthen the economy • Analyze, and rapidly respond to changing business needs to ensure maximization of all available resources of the workforce investment system • Measure, evaluate and continually improve services and products for businesses, using customer feedback and other standardized performance data

43. WFNY Long Island Business Services Team Response to Phase I Final Report • Assign companies in the study to individual workforce investment areas, based upon geographic location, for follow-up business services • Arrange LWIA business services staff consultation with companies regarding recruitment solutions, such as listing job openings, participating in One-Stop center employer presentations, etc. • Arrange LWIA business services staff consultation with companies regarding education and training solutions, such as customized training, on-the-job training (OJT), etc.

44. Team Response to Phase I Report (continued) • Transfer Career Ladder Data Base containing cross referenced employers, occupations, career ladder rungs, salaries, qualifications requirements training providers and sources of funding to LWIA databases and post to LWIA web sites • Correlate report findings with local labor market information (LMI) provided by Regional Economist • Combine consultant findings and LMI data into a summary report

45. Team Response to Phase I Report (continued) • Convene appropriate stakeholders in pursuit of High-Growth Job Training Grants and other funding opportunities • Present findings at Long Island LWIB meetings, to One-Stop System/Center staff and in other venues. • Facilitate meetings with the companies who participated in the study and with those who are interested in participating in the future to share findings conduct strategic planning and foster a commitment to workforce investment actions • Convene a summit with local school superintendents, local university and proprietary school leaders, regents and all interested stakeholders to share findings and describe curricula development needs

46. The regional business services team has also implemented a grant for career mapping in biotechnology

47. And is supporting an initiative for a skills center in retail trade

48. The partnerships and work in career mapping also helped leverage a recent grant for the region in advanced manufacturing.

49. Workforce New York Long Island Regional Business Services Team Partnering and Career Mapping on Long Island