Mac Holladay MACE 2016 presentation

1© MARKET STREET SERVICES PRESENTATION TITLE

Workforce and Talent

2016 MID-AMERICA CHAMBER EXECUTIVES ANNUAL CONFERENCE

J. MAC HOLLADAY, CCE, PCED, LM, HLMMAY 04, 2016

@_Market Street

2© MARKET STREET SERVICES 2016 MACE ANNUAL CONFERENCE

Agenda

•T

he Big 5 and Current Realities

•C

ompeting for Tomorrow’s Workforce (ACCE, Winter 2016)

•S

ioux Falls and Other Chambers

•Q

& A

•C

losing Thoughts

SECTION TITLE


The Big 5


Issue: Middle Class InsecurityDoes this sound familiar?


The Big 5

1.Education and Workforce Sustainability

2.Place

3.Diversity

4.Regionalism

5.Prosperity


Education and Workforce Sustainability


Educational Attainment

Geography 2009 2014 Pct. ChangeIowa 25.1% 27.7% 2.6%

Minnesota 31.5% 34.3% 2.8%Nebraska 27.4% 29.5% 2.2%

North Dakota 25.8% 27.4% 1.7%South Dakota 25.1% 27.8% 2.6%

Wisconsin 25.7% 28.4% 2.8%

Percent of Population +25 w/Bachelor's Degree or Higher

Source: US Census Bureau


Educational Attainment

Geography 2009 2014 Pct. ChangeIowa 9.5% 7.9% -1.6%

Minnesota 8.5% 7.4% -1.1%Nebraska 10.2% 9.7% -0.5%

North Dakota 9.9% 7.8% -2.1%South Dakota 10.1% 8.3% -1.7%

Wisconsin 10.2% 8.6% -1.6%

Percent of Population +25 w/o HS Diploma



Education and Workforce Sustainability Generations by the Numbers, 2014



Education and Workforce Sustainability Generations by the Numbers, 2014


Education and Workforce Sustainability Decreasing Worker/Retiree Ratios

Source: Market Street, using Moody’s population estimates


Education and Workforce SustainabilityManufacturing vs. Healthcare

Source: BLS and Census via the Wall Street Journal


Education and Workforce SustainabilityEmployment by educational requirement, 2012 and projected 2022

Sour

ce: U

.S. B

urea

u of

Lab

or S

tatis

tics

2012 2022 Number PercentDoctoral or professional degree 4,002.40 4,640.80 638.4 16.0%Master’s degree 2,432.20 2,880.70 448.5 18.4%Bachelor’s degree 26,033.00 29,176.70 3,143.60 12.1%Associate’s degree 5,954.90 7,000.90 1,046.00 17.6%Postsecondary nondegree award 8,554.20 9,891.20 1,337.10 15.6%Some college, no degree 1,987.20 2,212.20 225 11.3%High school diploma or equivalent 58,264.40 62,895.20 4,630.80 7.9%Less than high school 38,127.60 42,286.00 4,158.40 10.9%

Education level EmploymentProjected change,

2012–2022


Education and Workforce SustainabilityHigher education, difficult investment for many

• The average cost of college– Four-year non-profit private university: $39,173– Four-year public university: $17,474– Two-year public college: $8,928

• In 44 states, 50% or more of students at public four-year colleges graduate with student loans

• Seven in ten (69%) graduating seniors at public and private nonprofit colleges had student loans in 2013 and owed an average of $28,400 in student loans, up 2% from 2012

Source: Project on Student Debt and National Center for Education Statistics


Education and Workforce SustainabilityPublic 4-Year College Tuition Skyrockets

Source: National Center for Education Statistics, Bureau of Economic Analysis

Total Public 4-yr. College Cost increases

Total Cost PCICost/PCI

Ratio Change '07-'13, %Minnesota $17,998 $46,925 38.4% 31.2%Wisconsin $15,446 $42,121 36.7% 37.5%Iowa $16,358 $43,935 37.2% 30.1%Nebraska $15,291 $45,012 34.0% 37.3%North Dakota $13,210 $54,871 24.1% 24.3%South Dakota $13,858 $45,381 30.5% 38.3%United States $17,474 $44,765 39.0% 36%

Total Public 4-yr. College Cost as % of State PCI, 12-13 School Year


Education and Workforce SustainabilityUSA Land of Limitations?

Source: U.S. Bureau of Labor Statistics


A Simple Truth

“I’ve learned a simple and obvious truth from my own education experience: we have to give every kid in America the access to public education that I received. We need to place public education at the top of our priorities and the

center of our national life.”

Colin Powell It Worked for Me: In Life and Leadership (2012)


Place


PlaceInseparable from workforce attraction and retention

“Economic development today, more than ever before, is about talent management. Regions that are successful in economic development are creating and maintaining a community that is

attractive for creative workers.”

Richard Florida, 2007



“Urban leaders need to emphasize talent and those aspects of cities that make them attractive to talented workers”

- CEOS for Cities “Young and Restless in a Knowledge Economy”

What is Quality of Place?

•Character

•The Built Environment

•Diversity

•Amenities

King StreetCharleston, South Carolina



What is Character?•L

ivability

•Attractiveness

•Uniqueness

•History

•Aesthetics

•Style

•Desirability

•Community

•Connections

“The unique characteristics of place may be the only truly defensible source of competitive advantage for

regions.”

--City Vitals, CEOs for Cities



•The physical character(istics) of a city

•Man made physical structures

•The public physical environment

•The infrastructure of communities

Buildings

Roads

Parks

Bridges

Housing

Public Space

Commercial space

Pipelines and utilities

Design

Transit

Streets

What is the Built Environment?


PlaceFour Qualitative Quality of Place Questions

•Can people easily access the place?– Can people use a variety of transportation options such as walking, biking, or public transportation to reach the place?

•Does the place make a good first impression?– Do you feel safe?

– Is it free of litter?

•How many different types of activities are occurring? – Are people using the space or is it empty?

– Are there choices of things to do?

•Is this a place where you would choose to meet your friends? – Are people in groups? Are they talking to one another?

– Do local residents bring their friends and relatives to see the place? Is it a point of pride?



D

iversity is a breadth and depth of options in:

– Social opportunity (people and activities)

– Economic opportunity (jobs and industries)

“

A connection exists between a [community’s] level of tolerance for a range of people, its

ethnic and social diversity, and its success in attracting talented people.”

--Richard Florida


Workforce Sustainability and Quality of Place

Source: Urban Land Institute; America in 2015

National survey conducted by the Urban Land Institute focusing on individual preferences and desired community attributes.

What is the ideal size for your preferred place of residence?

32%

44%

51%

46%

29%

25%

24%

28%

37%

28%

22%

23%

0% 20% 40% 60% 80% 100%

Millennials

Gen Xers

BabyBoomers

War/silent

Rural/small townSuburbsCitiesOther


Community Building to CompeteWhat makes a community “sticky”?

•What makes a community a desirable place to live?

•What draws people to stake their future in it?

•Are communities with more attached residents better off?

Source: John S. and James L. Knight Foundation’s Soul of the Community Project


Community Building to CompeteWhat Makes a Community “Sticky”?

1. Social offerings • Such as entertainment venues and places to meet

2. Area’s aesthetics • Physical beauty and green spaces

3. Openness• Building networks and quality of life options for all kinds of people

Source: John S. and James L. Knight Foundation’s Soul of the Community Project


Diversity


DiversityMeet Ravi


DiversityDifferent is different

•Racial and ethnic diversity

•Quality of life choices

•Generational diversity

•Religious diversity

•Sexual orientation

“People (and companies) can locate

anywhere they choose — and they will. Competitive communities are ready to

welcome them and accept their differences. “


Source: Pew Research Center; 2013 Census Bureau Population Estimates

DiversityMajority Minority, 2013


DiversityMajority Minority

Source: The Economist, March 2015

Forecast


Diversity Explosion

The Facts: A Pivotal Period

1.Rapid growth of new minorities – Hispanics, Asians, multi-cultural.2.Diminished growth and rapidly aging of whites.3.Migration reversal and the rising middle class of African Americans.4.A shift to “no racial majority” nation.5.Half of the children under 5 are non-white.

Source: Diversity Explosion by William Frey, Ph.d.; August 2015


DiversityGenerational differences

Source: Pew Research Center, aggregated data from polls conducted in each year


North Carolina Monitor

Source: Atlanta Journal Constitution; April 24, 2016


Regionalism


Regionalism

“The power of regional organization in no way compromises either

community or state roles in economic development. It simply means that communities are better served by aggregating their resources at the

regional level, and states are better served by encouraging the delivery of services at the regional level.”

Southern Growth Policies BoardThe New Architecture of Rural Prosperity, 2005


RegionalismA More Interconnected World


Regionalism The Metropolitan Revolution Authors: Bruce Katz and Jennifer Bradley• Cities’ and metros’ capacity for action and innovation won’t be

measured solely by the fiscal health of local governments, but rather on the financial commitments and engagement of private, nonprofit, and civic institutions and their leaders.

• New regional institutions (or old institutions acting in new ways) will become more important. This follows directly from the previous point about cities and metros being networks.

• Cities and metros are on the front lines of income inequality, and they are using new tools (or old tools in new ways) to tackle it.

• Like smart businesses, cities and metros are learning what to copy and what to customize.


RegionalismAscendance of metro areas as drivers of U.S. economy

78.0%

58.2%

85.8% 86.8% 88.2% 91.8%

78.0%85.3%

91.2%85.5% 88.0%

100.0%

88.2%

22.0%

41.8%

14.2% 13.2% 11.8% 8.2%

22.0%14.7%

8.8%14.5% 12.0% 11.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Shar

e of

Em

ploy

men

t Cha

nge

(Gai

n or

Los

s)

Metro Share of Employment Change Non-Metro Share of Employment Change


Source: Milken Institute

RegionalismMilken’s Best Performing Cities

1 San Jose, CA 1 Fargo, ND-MN2 San Franscisco, CA 2 Bismarck, ND3 Provo, UT 3 Ames, IA4 Austin, TX 4 Janesville, WI5 Dallas, TX 5 Odessa, TX6 Raleigh, NC 6 The Villages, FL7 Seattle, WA 7 Columbus, IN8 Portland, OR 8 Bend, OR9 Greeley, CO 9 Logan, UT-ID

10 San Luis Obispo, CA 10 Auburn, AL11 Salt Lake City, UT 11 Midland, TX12 San Antonio, TX 12 Elkhart, IN13 Charlotte, NC-SC 13 Sioux Falls, SD14 Fort Collins, CO 14 Wenatchee, WA15 Naples, FL 15 Victoria, TX

Best Performing Metro Areas, 2015(Among 200 largest MSA's) (Among 179 smallest MSA's)


2015 Milken’s Best Performing Large and Small Metros

Iowa Minnesota Nebraska Wisconsin#45 - Des Moines #59 - Minneapolis-St. Paul-Bloomington #78 - Lincoln #20 - Madison#120 - Omaha-Council Bluffs #110 - Duluth #120 - Omaha-Council Bluffs #59 - Minneapolis-St. Paul-Bloomington#142 - Cedar Rapids #76 - Lake County-Kenosha County#192 - Davenport-Moline-Rock Island #104 - Green Bay

#110 - Duluth#164 - Milwaukee-Waukesha-Allis

2015 Milken's Best Large Metros

Iowa Minnesota Nebraska North Dakota South Dakota Wisconsin#24 - Iowa City #1 - Fargo #72 - Sioux City #1 - Fargo #13 - Sioux Falls #4 - Janesville-Beloit#52 - Dubuque #30 - Grand Forks #126 - Grand Island #2 - Bismark #43 - Rapid City #37 - Fond du Lac#72 - Sioux City #68 - Sheboygan #30 - Grand Forks #72 - Sioux City #101 - Eau Claire#138 - Waterloo-Cedar Falls #70 - St. Cloud #102 - Appleton

#81 - Mankato #105 - Oshkosh-Neenah#99 - Rochester #119 - Wausau#118 - La Crosse-Onalaska #158 - Racine

2015 Milken's Best Small Metros


Prosperity


The Growing Threat of Wealth Disparity

• The U.S. Conference of Mayors recently reported that the new jobs created since the end of the Great Recession pay on average 23% less than the ones we lost.

• The Milken Institute reports that while the GDP grew from 2001 to 2007, family incomes did not share in the gains for the first time, and with the losses during The Great Recession they are now back to 1990s levels.

• The median household income has fallen from $55,627 in 2007 to $53,657 in 2014. • The number of people on food stamps has increased from 26.3 million before The Great

Recession to 47.6 million now. One in six families, many of whom have never been on any public assistance, is now receiving this benefit.

• 34.4% of those unemployed have been unemployed for more than six months. The number was 17.4% before the Great Recession.


The Growing Threat of Wealth Disparity


ProsperityMinimum Wages


ProsperityEconomic Mobility

Source: New York Times, September 2013


The chance a child raised in the bottom fifth rose to the top fifth:

Source: New York Times, September 2013

ProsperityEconomic Mobility


Decade Start Decade End Change1970-79 47,538$ 50,089$ 5.37%

1980-89 48,462$ 53,306$ 10.00%

1990-99 52,623$ 57,843$ 9.92%

2000-09 57,724$ 54,925$ -4.85%

2010-2019 53,507$ - -

Change in Median HH Income(adjusted for inflation, 2014 USD)

ProsperityUnprecedented flattening of household income

“In the four decades that the Census Bureau has been tracking household income, there has never before been a full decade in which median income failed to rise.”

The New York Times

Source: U.S. Census Bureau 2014 Median HH Income = $53,657


Per Capita Income

Source: Bureau of Economic Analysis


Median Household Income

2009 2014 Percent ChangeIowa $48,044 $53,712 11.8%Minnesota $55,616 $61,481 10.5%Nebraska $47,357 $52,686 11.3%North Dakota $47,827 $59,029 23.4%South Dakota $45,043 $50,979 13.2%Wisconsin $49,993 $52,622 5.3%United States $50,221 $53,657 6.8%

Median Household Income (Adj. for Inflation)

Source: U.S. Census Bureau


Minimum Wage

“I think this issue is not going away until action is taken at the federal level, just because it is so low compared to where it is was historically and what it takes people to get by.”

David Cooper, EconomistEconomic Policy Institute


Competing for Tomorrow’s Workforce

ACCE, Winter 2016Matthew Tarleton and Ryan Regan


Competing for Tomorrow’s Workforce

“Attracting and retaining talented workers is key component of economic development, requiring deep commitment, careful research, and continuing resources.”

What chambers and economic development organizations can do:•Do your research to better understand your community.•Dare to be different and authentic.•Create connections to people.•Remember your internal audience.•Don’t go it alone.•Create connections to jobs.•Make sure your BRE program is holistic and opportunistic.•Focus on retention.•Invest in your place.•Deploy staff and resources.


Des Moines, IowaCarpe DM (seizedesmoines.com) Des Moines Partnership effort

Content rich site for anyone seeking information about living and working in Des Moines.

Information on work, education, housing, transportation, students, YP’s, empty nesters, recreation, and more!

Site includes downloadable curated songs from central Iowa musicians.

Can connect via LinkedIn with community members.


Omaha, Nebraska“Omaha: We Don’t Coast” Greater Omaha Chamber of Commerce campaign.

“We Don’t Coast” is heavily leveraged on social media (#wedontcoast).

Chamber also launched a number of complementary initiatives focusing on jobs, recreation, entertainment, philanthropy, etc.


Grand Island, NebraskaGrow Grand Island

The Grand Island Chamber of Commerce partnered with the public sector, groups of volunteers and other organizations to advance investments in quality of place.

Growgrandisland.com reflects the community’s cooperative approach to growth, driven by the residents.


Watertown, South DakotaArtwalk

A part of Watertown Community Foundation’s H20-20 initiative.

Ten sculptures by ten different artists.

The aim is to revitalize a district called Uptown.

Pictures sourced from visitwatertownsd.com


Nashville, TennesseeWorkITNashville

• Launched by the Nashville Area Chamber.• Partnered with the Nashville Technology Council to provide input on design and content.• Website focuses on tech related jobs but also has tabs on where to live and

entertainment options.• Keeps Twitter and blogs recent.


Austin, TexasGreater Austin Technology Partnership

• The Austin Technology Partnership (ATP) was formed in 2014 between the City of Austin and the Austin Technology Council.

• Brings together City leadership, regional stakeholders, and the technology industry to advance the regional tech economy.

• ATP is a new model for public-private collaboration, developing an accurate understanding of Austin’s needs

• The goal is to efficiently applying economic dollars and efforts to support the continuously growing IT sector.

Source: http://austintechnologycouncil.org/


Sioux Falls and Other Chambers


Sioux Falls Strategic Workforce Action AgendaScope of Work


Foundational Questions

• Do we have a sustainable workforce capable of supporting job growth in the decades ahead?

• Are educational systems aligned with current and future employment needs?

• What state-level changes might be needed to achieve optimal levels of alignment?

• Which occupations and business sectors are most susceptible to impending retirements or technological advances?

• Do we have ample training and degree programs to maintain a full pipeline of workers?

• How should our talent attraction, retention, and development strategies be differentiated by skill set and/or occupation?


Workforce Sustainability Analysis FindingsReasons for hiring difficulties

Source: 2015 Sioux Falls Strategic Workforce Action Agenda


Action Agenda Goals and Strategic Focus Areas

2 Goal Areas + Shared Focus Areas


Key Initiatives

• Develop a cradle-to-career coalition in the Sioux Falls Area

• Design and implement a talent marketing campaign, incorporating and coordinating existing efforts

• Develop and optimize a comprehensive online talent portal

• Identify and advance priority programs to support targeted populations in the region


Questions?


Final Thoughts


Two Things To NEVER Say:

“We have always done it that way.”

“We tried that once before.”


“We can’t solve problems by using the same kind of thinking we used when we created them.”

“Insanity is doing the same thing over and over again and expecting to get different results.”

“Life is like riding a bicycle. To keep your balance you must keep moving.”

Albert Einstein


“No good idea succeeds simply because it is a good idea. Good ideas must have champions – people willing to believe in them,

push for them, fight for them, gain adherents and other champions, and press until they succeed.”

Colin PowellIt Worked for Me: In Life and Leadership

2012

Champions


J. Mac Holladay, CCE, PCED, LM, HLM [email protected]

404-880-7244

www.marketstreetservices.com

@_Market Street

Market Street Services, Inc.

Presentations & Public Speaking

Mac Holladay MACE 2016 presentation