Transcript here to the power point presentation

Bolstering Workforce
Adapting to Changing Economic
Landscapes
Speakers
• Dr. Louise Comfort
o Director, Center for Disaster Management
• Michael Fox
o Executive Director, Plainview/Hale
County Economic Development Corporation
• Steven Perdia
o General Manager, Strategy and Planning,
Canterbury Development Corporation
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Dr. Louise Comfort
• Director, Center for Disaster
Management, University of Pittsburgh,
Pittsburgh, PA
• Ph.D., Yale
• Fellow, National Academy of Public
Administration
• Author of six books, including:
• Designing Resilience: Preparing for
Extreme Events
• Mega-Crises: Understanding the
Prospects, Nature, Characteristics and the
Effects of Cataclysmic Events
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The Impact of Extreme
Events on Business
Organizations
Louise K. Comfort and Research Staff,
Center for Disaster Management, University of Pittsburgh
Pittsburgh, PA 15260 Email: [email protected]
Building Resilience to Extreme
Events
• Challenge to businesses: cost, losses, down time
• Superstorm Sandy, 2012: $72 billion in estimated
losses; second only to Katrina, est. $135 billion
• Directly affected 60 million people in 24 states
• Economic losses estimated at $66 billion, NY, NJ
• Storm caused cascading effects, disrupted
businesses, jobs lost, altered local economies
RISK IS INCREASING
• As society becomes more interconnected, losses
increase
• Transportation, communication, energy, water, waste
water distribution systems operate as interdependent
services
• If one service is disrupted, demand increases on
others; threat is compounded by aging infrastructure
• Businesses most affected by extreme events, yet,
make least investment in risk reduction, preparedness
Innovative Approaches
• Regions exposed to continuing risk have sought practical measures
of coping with hazards
• National Association of Workforce Boards sought to identify
measures that enabled businesses to build resilient operations
• CDM Study produced five sets of findings:
• Key provisions, Workforce Investment Act 1998, for disasters
• Key strategies used by other regions exposed to risk
• Characterized impact of Sandy on businesses, response to storm
• Areas of strength, weakness in response operations
• Recommendations: reducing consequences of disaster events
Workforce Investment Act (WIA)
•
•
•
•
WIA intended to support communities in economic dislocation
WI Board interprets disaster impact as economic dislocation
WIA funds can be accessed, if federal disaster is declared
Under WIA, workers can be hired to:
• Provide information about jobs to those who lost their jobs
• Participate in training programs for new jobs
• Assist local community in developing coordinated response
to event
• Assist local community in obtaining state assistance for jobs
WIA in Practice
• Before an event
• Assess existing risk accurately
• Understand structure of WIA system, its provisions, requirements
• Assist organizations in developing business continuity plans
• During an event
• Assess status of WIB members, their safety, immediate needs
• Use knowledge base of operations, developed prior to event
• Design alternative strategies for maintaining operations
• Mobilization for workforce recovery
• Implement work process for recovery
• Manage basic functions of the recovery process
Major Management Issues
• Design, enable communication flow, set up tracking
system
• Manage information
• Create partnerships
• Develop funding sources
• Map funding sources, create funding strategies
• Address recurring workforce recovery issues: housing,
transportation, utilities, critical supplies
• Design and implement business continuity plans, review,
reflect, and redesign business in changed environment
Impact of Sandy on Workforce
Table 1. Estimated Infrastructure Losses for New York and New Jersey post-Sandy.
(Source: Aon Benfield, 2013, Table 9, p. 38)
Type
Loss
Type
Loss
NYC Metropolitan Transit Authority
5.0 billion
Marine (All states)
5.0 billion
Roads, Bridges, Tunnels (NY & NJ)
6.4 billion
Recreational Boats (All states)
1.0 billion
Water, Waste, Sewage (NY & NJ)
4.7 billion
New Jersey Transit
400 million
Utilities (NY & NJ)
2.5 billion
Amtrak (Losses & Mitigation Costs)
336 million
NY/NJ Port Authority
2.0 billion
NYC Schools
200 million
PATH Train System (NJ)
700 million
NYC Hospitals
300 million
The Emergency Response
System following Sandy
Table 2. Distribution of organizations identified in Sandy response news report content analysis
cross-tabulated by source of funding and jurisdiction.
Jurisdictions
SubState
state
Funding
International
National
Subnational
County
Municipal
Local
Total
non
profit
3
(0.5%)
57
(8.9%)
8
(1.2%)
6
(0.9%)
4
(0.6%)
1
(0.2%)
4
(0.6%)
29
(4.5%)
112
(17.4%)
private
42
(6.5%)
226
(35.2%)
31
(4.8%)
12
(1.9%)
7
(1.1%)
-
2
(0.3%)
34
(5.3%)
354
(55.1%)
public
15
(2.3%)
76
(11.8%)
3
(0.5%)
45
(7%)
3
(0.5%)
7
(1.1%)
27
(4.2%)
-
176
(27.4%)
Total
60
(9.3%)
359
(55.9%)
42
(6.5%)
63
(9.8%)
14
(2.2%)
8
(1.2%)
33
(5.1%)
63
(9.8%)
642
(100%)
Figure 2. Distribution of organizations engaged in response operations by jurisdiction
and source of funding. Center pie-primary organizations; outer pie-secondary organizations.
Figure 3. Network map of Sandy response system, October 28-November 3, 2012. Symbols
sized by number of transactions; shapes by funding source; color by jurisdiction.
Figure 4. Frequency of actions in emergency operations by source of funding and
week in response and recovery, October 28, 2012-February 11, 2013.
Summary of findings regarding the impact
of Sandy on business organizations
• 55.1% of organizations engaged in response operations
following Superstorm Sandy are business organizations
• 54% of business organizations interacted w/ nonprofits, but
donated funds, products; did not engage in direct operations
• National organizations were most active during response
operations
• Business organizations played an important role in Sandy
recovery operations, but were active only for short periods
Conclusions and recommendations
for action
• WIA 1998 represents opportunity for innovation, change, and
renewal in sustainable workforce development
• Workforce investment systems constitute an organizational
infrastructure that connects public, private, and nonprofit
organizations in disaster recovery
• Lack of preparedness leads to escalation of damage
• Designing an interactive information infrastructure links
workforce investment with sustainable disaster management
• Building community resilience creates a continuing process of
adaptive learning and action for…
• …. all organizations – public, private, and nonprofit – in
regions exposed to risk.
Acknowledgments
• I acknowledge, with thanks, the graduate student staff at the
Center for Disaster Management: B. Chalfant, J. E. Song, J. Yeo,
Mengyao Chen, Brian Colella for assistance with analysis, graphics.
• Thanks and appreciation to Ronald Painter and Josh Copus,
National Association of Workforce Boards, Washington, DC, for
assistance in providing access to information and references.
• Warm thanks to the experienced managers who participated in
the interviews and generously gave their time and insights.
Michael Fox
• Executive Director,
Plainview/Hale County
Economic Development
Corporation, Plainview, TX
• 30 years in radio
broadcasting
• Commercial loan officer,
Wells Fargo Bank
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Effective responses to the
Cargill closure in Plainview, TX
Michael Fox,
Executive Director, Plainview
Economic Development Corporation
Plainview, Hale County, TX
• Plainview: 21,900 (2013)
• Hale County: 35,800 (2013)
• North East Texas, Panhandle Plains
area, between Lubbock and Amarillo
• Economic structure
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Cargill Meat Solutions
•
•
•
•
•
•
Community partner for over 30 years
Employed 2,200
Processed 4,500 cattle daily
Many 2nd and 3rd generation workers
High wages
Supported local and area charitable
causes
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Texas Drought
• Started in 2010
• Record low rainfalls
• Over 1,000,000 cattle in feed yards within
a 30 mile radius in 2010
• 10 feed yard operations in the area for
sale, but few buyers
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Cargill Plant Idling
• Warning signs, denials from company
officials
• Community reactions
• School District impact
• Unemployment rate: spiked to 15%
• Ripple effects: local vendors, retailers
• United Way lost 40% of its contributions
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Steps to stabilize the local
economy
•
•
•
•
Job fairs
Buses to Friona, TX Cargill plant
$2,100,000 DOL Grant for re-training
South Plains College: Expansions of
Technical/Vocational Facility
• Wayland Baptist University
• Plainview Independent School District:
GED opportunities
• Language training
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EDC Steps
• City/County governments and EDC
prioritized Economic Development
• Focus on retaining local industries to avoid
domino effect
• Focus on diversification
• Leverage wind and other alternative
energy industry developments
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Plainview Today
• Predictions:
o Major population drop
o School closure
• Great resiliency
o Employment rate: 6.8%.
o Sales Tax: Up 7%
o Stable population
o School enrollment : Up over previous year
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Steven Perdia
• General Manager, Strategy and
Planning, Canterbury Development
Corporation, Christchurch, New Zealand
• Responsible for Christchurch Economic
Development Strategy (CEDS) to 2031
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POST EARTHQUAKE LABOUR
MARKET DYNAMICS IN
CHRISTCHURCH
APRIL 2015
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Overview

Workforce - Immediate response

The labour market today

The next few years
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Early Forecasts
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Early Forecasts
Christchurch Population Projections
500000
450000
400000
350000
300000
250000
200000
Actual (estimated)
Baseline
Decline
Attractive City
Working aged (15-64)
Working aged (actual)
150000
100000
50000
0
Source: CDC, Statistics NZ, Market Economics
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Initial Response
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



Joint Governance Group (Ministry, CERA, Local Gov, EDA, Chamber of
Commerce)
Skills Hub (job matching) facility for construction sector (Ministry)
Skills shortage list and rapid application processing (Ministry)
Information and connections portal (Ministry)
Recruitment toolkit (EDA)
Additional Trades Training (SCIRT)
Maori Trades Training (Iwi/Polytech)
Sector Workforce Plans (EDA/CERA)
Modelling, Forecasts (EDA/Ministry)
Information and Reporting (EDA/CERA)
Migration Support Services expanded (Chamber)
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Current Forecasts
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GDP growth well above NZ average …
Gross Domestic Product
Annual Average Percent Change
Source: Statistics New Zealand, Infometrics, CDC
10%
8%
6%
4%
2%
-2%
-4%
-6%
Christchurch
Canterbury
New Zealand
Jun 14
Dec 13
Jun 13
Dec 12
Jun 12
Dec 11
Jun 11
Dec 10
Jun 10
Dec 09
Jun 09
Dec 08
Jun 08
Dec 07
Jun 07
0%
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Rebuilds share soon to reach peak 10%
Canterbury Gross Domestic Product
$m 2010 prices
Source: Statistics New Zealand, Infometrics, CDC
26,000
25,000
24,000
23,000
22,000
Rebuild currently 7% of economy - rising to 10%
21,000
Actual
CDC estimated underlying (non-rebuild)
2014
2013
2012
2011
2010
2009
2008
20,000
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… with underlying sectors doing well
Canterbury Sector Output
Annual Average Percent Change
Source: Statistics New Zealand, Infometrics, CDC
50%
Sector weights in total GDP:
Manufacturing
12%
Construction
10%
Whole/ret trade 10%
Agriculture
7%
Total
39%
40%
30%
20%
10%
2014
2013
2012
2011
2010
2009
2008
2007
0%
-10%
-20%
Manufacturing
Construction
Wholesale & retail trade
Agriculture
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Labour market is booming …
Canterbury
New Zealand
Unemployment rate
3.4%
5.6%
Labour market participation rate
72.9%
70.1%
Employment growth in 2014
8.8%
4.0%
Average earnings growth in 2014
5.5%
2.8%
37%**
33%
Difficulty finding skilled labour (% bal. finding it hard)
** South Island
Source: Statistics NZ, NZIER, CDC
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Policy/Project Review
THEMES
 Optimise migration opportunity (attraction strategy, visitor strategy)
 Monitoring (Ministry, EDA)
 Transition from construction to underlying economy (Skills Hub)
PROJECTS
 Open visa scheme (review skills shortage list)
 Sector projects to support growth (education pathways, profiling, labour
attraction)
 Information and reporting is with EDA and ongoing
 Migration support services continues
 Jobs fairs, international student expos, business toolkits
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… attracting record levels of migration
Canterbury Net International Migration
Source: Statistics New Zealand, CDC
8000
6000
2000
-2000
-4000
2014
2013
2012
2011
2010
2009
2008
2007
2006
0
2005
Number of People
4000
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Labour market changes to come
Transition as much labour as possible from construction to underlying economy
 Optimise the Canterbury Water Management Strategy (job growth)
 Innovation and entrepreneur economy
 Impact of housing supply

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Canterbury
Region of Opportunity
Questions and Answers
Upcoming Webinars:
May 13. Business Creation: The Fourth
Leg of the Stool
June 11. Strategies to Retain Businesses
After a Crisis (free)
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