Oconee County Industrial Group Workforce Development Initiatives Industry and Education

1. Oconee County Industrial Group Workforce Development Initiatives Industry and Education “A Winning Combination” STEM Presentation August 3, 2009 August, 2009 Todd Bennington VP of Operations BorgWarner Seneca Plant

2. STEM • Thank You We (manufacturers) don’t say it often enough – but thank you for your dedication to the math, sciences and technology. Without you, our ability to compete in the future would not exist!

3. Manufacturing’s Impact - Facts • Nationally • Today – 16% of GDP but 26% of total value to the economy • 14 million manufacturing jobs • 52% of jobs actually produce the product • 48% is in support services • US carries a 20% cost burden (Environmental regulations, litigation costs, taxes, health care)

4. Manufacturing Impact – Oconee County • Locally • $230 million dollars of payroll • $60 million dollars in benefits • 1 out of every 5 jobs direct – 6000 jobs • Manufacturing employment is expanding • Thousands of indirect jobs generated • Second Highest per capita income • Support to Charities • Tax base impact – $6.2 million direct

5. Oconee County Industrial Group • Formed in 2006, made up of many of Oconee County manufacturers and support industries and the Oconee Economic Development Commission. • Annual membership fee adopted to enable OCIG to fund at least one special initiative during each year.

6. Oconee County Industrial Group • Objectives • Retain / Create Jobs • Legislative Awareness • Media Education – Positive • Community Education - Positive • Tax Abatements • Training Incentives • Workforce Preparedness • Remaining Union Free • Build Camaraderie Amongst Local Manufacturers

7. Oconee County Industrial Group • Mission • Educate the community on manufacturing’s very positive impact on our community: • Taxes Paid • Total Payroll • Benefits • Vendor Support • Total Jobs – Direct and Indirect • Impact on Utility Pricing • Charitable Initiatives • Tuition Reimbursement

8. Oconee County Industrial Group • Mission Steps • Develop Manufacturing’s Story in Oconee County. • Produce a Video the introduces members and what they produce, and tells Manufacturing’s story. • Set Up Speaking Engagements with various community organization (Rotary, Oconee Alliance, etc…..). • Develop list of OCIG initiatives impacting our community and businesses going forward.

9. Oconee County Industrial Group Oconee County Industrial Group Video

10. Oconee County Industrial Group Step 1: Selection of Initiative The state of education and workforce development in SC - Workforce Preparedness – the changing expectations of employees in the 21st century job market. The need to expand our initiatives around the Engineering and Technology through science and math.

11. The Challenges in Today’s Market 1. Globalization2. The State of Education and Workforce Development in South Carolina3. The Per Capita Income and Workforce Gaps By Permission of RECAB - 2007

12. The Challenges: Globalization “When I was growing up, my parents used to say to me, ‘Tom, finish your dinner. People in China and India are starving.’ Today I tell my girls, ‘Finish your homework. People in China and India are starving for your jobs.” —Thomas Friedman, Author The World is Flat: A Brief History of the Twenty-first Century • 90% of all jobs lost (2.5 million) between 2000-2003 were in manufacturing

13. Global Compensation – Hourly - 2005

14. Global Compensation – Salary - 2005

15. Oconee County Industrial Group

16. Oconee County Industrial Group

17. Oconee County Industrial Group

18. Oconee County Industrial Group

19. Oconee County Industrial Group

20. The State of Education and Workforce Development in South Carolina • In 2001, according to five national surveys, South Carolina had a high school graduation rate somewhere between 48 percent and 62 percent. All surveys ranked South Carolina 49th or 50th in the nation in graduation rate1 • 53% of high school students graduate in four years — the nation’s lowest “on time” graduation rate in 20032 • 33% of 8th graders scored below the basic reading level in 20053 1Higher Education Information Service 2003, United Health Foundation 2004, Urban Institute 2004, National Board on Educational Testing and Policy 2004 8th, Manhattan Institute 2003 2Education Week publisher research. 3Annie E. Casey Foundation, 2005 Kids Count report.

21. The State of Education and Workforce Development in South Carolina • 17% of South Carolina households were headed by high school dropouts in 20053 • 56% of South Carolina adults function at a literacy level at or below the fifth grade2 • SC labor participation rates are among the lowest in the United States: 500,000 adults under the age of 65 are not in the workforce. 2National Assessment of Adult Literacy

22. What the Employers Think 85% of Employers Rate HS Graduates Fair or Less Source: Skills-that-Work IV, 2006

23. The Per Capita Income Gap 12005 American Community Survey, U.S. Census Bureau.

24. Workforce Development Step 2: Recognize we (manufacturing) are part of the problem • It’s just not the school system – we own an equal level of responsibility. It was time to get involved with our local school administrators – play a supporting role.

25. Workforce Preparedness • Step 3: Establish a partnership with the local school system • Propose a meeting with the School Board, Superintendent, Principals and Counselors to introduce manufacturing to them. • Invite them into a manufacturer to learn about manufacturing • Job Opportunities • Income • Benefits • Environment • Capital Investment / Technology • Our Needs • Prepare a presentation that acknowledges the need to work together. Do your homework. (Example of Package going around room).

26. Workforce Preparedness • November 2007 • Oconee County Superintendent Mike Lucas, administrators, principals, counselors, school board members meet at BorgWarner for a full day of information sharing. • After lunch, every guest was sent to the manufacturing floor to run production equipment, witness the environment, technology, and the skill base of the employees.

27. What Students Really Need to Succeed Step 3: Describe our expectations as employers • Employer Expectations • Fundamental academic knowledge • Excellent technical skills • Workplace habits that maximize employability • Flexibility to update or change skills • Organizational skills • Top Five Most Important Skills • Professionalism • Teamwork • Oral Communication • Ethics and Social Responsibility • Reading Comprehension 42% of Employers report the overall preparation of high school graduates as deficient

28. What Students Really Need to Succeed • Fundamental academic knowledge • Excellent technical skills – • Specific emphasis on the Sciences / Tech. • Workplace habits that maximize employability • Flexibility to update or change skills • Organizational skills

29. School Administration Awareness • Is there a specific bias to 4 Year College versus 2 Year or Trades Certification amongst school counselors? • Do local school administrator’s clearly understand manufacturing's environment and needs? • Do local school administrator’s clearly understand the compensation levels of manufacturing workers?

30. The Workforce Gap *1998-1999 State Department of Education Special Survey **Source: D’Amico,C. Workforce 2020

31. The Workforce Gap The Reality: 85 Percent of Jobs Require Education / Training Beyond High School • Advanced technical training / certification, 2 year and 4 year degrees will lead to higher earning careers.

32. Skilled Maintenance Career Paths • Aging Workforce Average Age 53 • Limited Pool Qualified Craftsmen • Limited Training Programs • Lack of High School Career Paths • Lack of Students Interest for Technical Training • Limited Interface Industry and Education • Limited Community College Resources

33. Types of Positions / Hourly / Non 4 Year- Degreed • Coordinators • Team Leaders • Finance Clerical • Administrative Assistants • Tool Crib Attendants • Material Handling Specialists • Assembly Operators • Clerical • Welders

34. Types of Positions / Hourly / Non 4 Year- Degreed • Heavy emphasis on Math and Science • Car Test • Machining Operators • Product Quality Technicians • Quality Calibration • Electricians • Mechanics • Tool and Die Makers • Maintenance Technicians

35. Types of Positions / 4 Year- Degree • Heavy emphasis on Math and Science • Manufacturing Engineers • Industrial Engineers • Product Engineers • Quality Engineers • Metallurgists • Fluids Engineers • Programmers

36. Technical Needs: Skill Base Shortages • Positions requiring strong background in Math and Science • Mechanics / Electricians / Plumbers / Programmers • Machinists • Tool and Die Makers • Mold Makers • Welders • Engineering Technicians • Manufacturing Engineers • Industrial Engineers • Product Engineers • Quality Engineers

37. Compensation • With (2) Years of Service • Hourly Rates • Production: $12.28 to $16.96 $35K • Maintenance: $17.01 to $25.15 $52K • Engineering related Fields: $55 to $90K • Engineering Management: $75 to $110K • Annual Bonus Plan • 15% Max of Annual Earnings • Benefits 30% of base • Major Medical • Rx Drug Plan • Dental and Vision • Accident Insurance • Group Universal Life • Retirement Savings Plan • Matching Company Savings • Paid Vacations

38. BorgWarner Seneca Benefits Paid Time Off 1 year = 10 days 5 years = 15 days 10 years = 20 days 15+ = 25 days Holidays - 11 per year Bereavement Pay - up to 3 days Short and Long Term Disability Team Wear/Safety Shoes Service Awards - 5 year increments Onsite Fitness Center Employee Assistance Program Merit Scholarship Program Tuition Assistance Program Auto supplier discounts (GM, Honda, Ford, Daimler/Chrysler) Incentive Bonus - up to 15%

39. BorgWarner Seneca Benefits Medical Insurance – 3 plan choices Choice Health Fund $0 Core Plan (PPO) $50 - $130/month Point of Service (POS) $56 - $135/month On site medical clinic (HealthSTAT) Rx Drug Plan Dental and Vision Employee Only $12.50/month Family $34/month Personal Accident Insurance Up to 500K Basic Life Insurance 1X annual salary up to $50K - no cost to employee Group Universal Life Can purchase up to 4x your annual salary of additional coverage Flexible Spending Account Retirement Savings Plan Company Retirement Account - match the first 3% Associate Savings Account Retiree Health Account - $500 match

40. 2007/8 Initiative Step 4 - Identify a Vehicle to utilize to get involved: • The Education and Economic Development Act (EEDA) of 2005 Personal Pathways to Success…………..South Carolina Education Initiative

41. Personal Pathways to Success: A New Vision for Education • The Education and Economic Development Act (EEDA) of 2005 establishes a new vision for education based on the idea of “Personal Pathways to Success” for all students • This system integrates academic and career-tech education into a unified system that offers more and better ways for all students to succeed

42. Elements of the Education and Economic Development Act • Help students connect education to careers of their choice • Increase the number of guidance and career counselors to achieve a 300 students to one counselor ratio • Establish clusters of study and Individual Graduation Plans (IGPs) for students • Provide for parental review and approval of IGP with student and counselor • Identify at-risk students and provide programs to increase graduation rate

43. With Personal Pathways to Success:The Business Community Wins • Improves the quality of graduates entering the workforce by giving them job-specific skills • Gives graduates the “soft” skills—professionalism, punctuality, responsibility, reliability—necessary for success • Facilitates recruiting of new workers and reduces turnover by helping students pinpoint their career interests and talents • Improves the business climate by promoting economic development

44. Potential Jobs – OCIG • Various manufacturers within the OCIG are forecasting significant needs for both manufacturing operators and skills trade personnel to meet projected demand over the next three year period.

45. Next Steps - How Can We Help? • Step 6: Follow up on recommendations • Breakout Session – Idea’s • Job Shadowing • Apprenticeship Sponsoring • Sharing the Message in our Schools • Plant Tours • Job Experiences • Product Fairs • Open Houses

46. Workforce Preparedness • Step 7: Select the topics to follow up on: • Sharing the message in our Schools • Product Fairs

47. Workforce Preparedness • Step 8: Sharing the message • Utilizing the “steps to success plan”, it was determined that an introduction to manufacturing to the 8th grade teachers of Oconee County was the next logical step. This would be done in conjunction with a product showcase, for students, teachers and parents. • 8th grade is the first year students will be exposed and expected to select a career path. Teachers needed to be educated about manufacturing.

48. Workforce Preparedness • Step 9: Formed committee to oversee planning • Teacher Introduction / Product Showcase • Sub-group of OCIG members • Representatives from the EDC • Representatives from the media (newsprint/magazines) • Representative from the Oconee County School System • Representative from Tri-County Tech • Representative from the REC • Representative from the County • Teamed up with like organizations: • Oconee Alliance • Regional Education Center • Tri-County Tech • Silver Crescent Foundation

49. Workforce Preparedness • Step 10: Dinner and Program – Introduction to Manufacturing • Established Agenda / Theme for Program • Industry and Education – A great combination • Determined Location • Determined Date and Start Time • Mailed out Date Saver Cards (2 weeks before hand) • Mailed out Invitations • Mapped out radio and newsprint media public notices • Identified Speakers • Determined menu / scheduled eating time • Invited Oconee School Board and local legislators • EDC tracked down non-OCIG sponsors • School System provided incentive for teachers to attend (1/2 day in service credit) • Prepared information pack (300 packages) • OCIG Video of local manufacturers – updated - reproduced • Package on Workforce Preparedness - reproduced • Newspaper insert developed on jobs in local industry • Gift

50. Showcase Dinner – Night Before