FUTURE TRANSPORTATION WORKFORCE NEEDS Mid-A

FUTURE TRANSPORTATION WORKFORCE NEEDSMid-America Transportation CenterScholars ConferenceOctober 30, 2015

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ABOUT THE PRESENTERELAINE E. ARMSTER

10 Years Natural Gas Industry State DOT Section ChiefPresident,Linkscape360 LLC

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ABOUT THE PRESENTERELAINE E. ARMSTER

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Wal-Mart Stores Inc applied Monday to U.S. regulators for permission to test drones for home delivery, curbside pickup and checking warehouse inventories, a sign it plans to go head-to-head with Amazon in using drones to fill and deliver online orders.The world's largest retailer by revenue has for several months been conducting indoor tests of small unmanned aircraft systems the term regulators use for drones - and is now seeking for the first time to test the machines outdoors. It plans to use drones manufactured by China's SZ DJI Technology Co Ltd.In addition to having drones take inventory of trailers outside its warehouses and perform other tasks aimed at making its distribution system more efficient, Wal-Mart is asking the Federal Aviation Administration for permission to research drone use in "deliveries to customers at Walmart facilities, as well as to consumer homes," according to a copy of the application

The move comes as Amazon.com Inc, Google and other companies test drones in the expectation that the FAA will soon establish rules for their widespread commercial use. FAA Deputy Administrator Michael Whitaker said in June that the agency expected to finalize regulations within the next 12 months, faster than previously planned. Commercial drone use is currently illegal, though companies can apply for exemptions.

The FAA will review Wal-Mart's petition to determine whether it is similar enough to earlier successful applications to be fast-tracked, or whether it would set a precedent for exemptions, requiring regulators to conduct a detailed risk analysis and seek public comment, agency spokesman Les Dorr said. The FAA normally aims to respond to such petitions in 120 days.Amazon has said it would be ready to begin delivering packages to customers via drones as soon as federal rules allow.

Wal-Mart spokesman Dan Toporek said the company would move quickly to deploy drones depending on its tests and regulations.In the FAA application, Wal-Mart said it wanted to test drones for taking stock of trailers and other items in the parking lot of a warehouse using electronic tagging and other methods.

Wal-Mart also said it wants to test home delivery in small residential neighborhoods after obtaining permission from those living in the flight path. The test would see if a drone could be deployed from a truck "to safely deliver a package at a home and then return safely to the same," the application says.

To date the FAA has approved more than 2,100 exemptions allowing for commercial drone testing and use.

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PRESENTATION OUTLINE

INTRODUCTION

100 YEARS: EVOLUTION OF TRANSPORTATION WORKFORCE

HISTORIC COLLABORATION: U.S. SECRETARY OF LABOR, U.S. SECRETARY OF EDUCATION, U.S. SECRETARY OF TRANSPORTATION

JOINT REPORT OVERVIEW: STRENGTHENING SKILLS TRAINING AND CAREER PATHWAYS ACROSS THE TRANSPORTATION INDUSTRY

POSITIONING FOR SUCCESS

QUESTION AND ANSWER PERIOD

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TRANSPORTATION WORKFORCE: 100 YEARS AGO1915 - 2015

Transportation Industry provided jobs for early 19th century Americans Successful cities had a skilled and semi-skilled workforce that was able to design and construct a network of transportation systems to move goods, services, and people. Jobs included: Road building, Railway operations, Streetcar operations, Car assembly lines, Maritime operatorsAnd Jitney Drivers!

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TRANSPORTATION WORKFORCE: 100 YEARS AGO1915 - 2015

Jitneys & Uber Been There; Done That

We didnt have the app-based taxi company called Uber 100 years ago, but we did have a similar alternative transport system called the jitney that was just as convenient and just as controversial.

Youve heard of a quarter being called two bits, but you probably never heard a nickel called a jitney. The origin of that term is obscure, but it was commonly used, especially 100 years ago when there were still things around that cost five cents like, for example, a ride on a streetcar. And a nickel, or jitney, also bought you a ride in a private car often a Ford Model T touring car driven by its owner who wanted to use his/her vehicle to make some extra money. Sounds like Uber, eh?

The first jitneys in 1915 were often Ford Model T touring cars driven by the cars owner.Streetcar companies complained because the jitneys often drove one block ahead of the slower streetcar and picked off potential customers. There was concern about the city losing money because streetcar companies paid two percent of their gross income to the City of Santa Barbara. The City Council was considering requiring jitney licenses of $50 to $75 per year to recoup its losses.Santa Barbaras streetcar companies said that jitneys were causing them, and the city, to lose money. (Image: courtesy of Neal Graffy)Santa Barbaran Alfred A. Lloyd operated a fleet of 10 automobiles that charged 25 cents for rides from Santa Barbara to Montecito or 50 cents to Carpinteria. Lloyd charged more than the average jitney, but he covered larger distances, and his motto was, First-class Service for First-class People. Lloyds cars were not driven by wimps either, We do not lay cars off when it rains. We make no bluff and are here to stay. Our cars run every hour rain or shine. If you want real service, phone 1005. (Like Uber, jitneys could be summoned by phone.)

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TRANSPORTATION WORKFORCE: 100 YEARS AGO1915 - 2015

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TRANSPORTATION WORKFORCE: 100 YEARS AGO1915 - 2015

This attitude began to change in the 1890s, when the bicycle revived interest in roads. New Jersey, in 1891, became the first state to adopt a "state-aid" plan, under which a state appropriates funds to be made available to its counties for road improvements. The federal government created the Office of Road Inquiry in 1893, under Stone, to advise state and local officials on the best methods of improving their roads.

Early in the 20th century, Stone's successor, Martin Dodge, began advocating a similar concept of "federal aid" to the states. Dodge's assistant, M.O. Eldridge, drafted a federal-aid bill, which was introduced to Congress in December 1902 by Rep. Walter P. Brownlow of Tennessee. The bill would create a Bureau of Public Roads to administer $20 million a year in federal aid. Grants would be made to any state or county that agreed to pay 50 percent of the road construction cost. The federal government would prepare the plans and specifications for the roads, but the state or county would administer and supervise the contracts.

This cartoon was originally published in Better Roads and Street magazine in September, 1916.The Brownlow bill was not actively considered by Congress. Many members of Congress were not convinced the federal government had the constitutional authority to enact such a program. Others questioned the wisdom of embarking on a program that would be a constant drain on the treasury. Over the next decade, many other good-roads bills were introduced, but like the Brownlow bill, they were routinely assigned to committee and promptly forgotten.

Several factors gradually altered the reluctance to consider the federal-aid concept. First, the growing involvement of farmers in the good-roads movement reinforced the importance of roads in everyday life. Farmers who initially resisted being taxed to pay for good roads so wealthy city "peacocks" could ride their bicycles became enthusiastic advocates of good roads with the introduction of Rural Free Delivery (RFD), which depended on the existence of passable roads for home delivery of mail.

Second, the rise of the automobile in the early 20th century altered the picture, particularly after 1908, when Henry Ford introduced the low-priced Model T that the average person - not just the wealthy - could afford. The growing power of motorists was reflected in the American Automobile Association (AAA), which became one of the strongest backers of federal action on roads.

Third, the Supreme Court settled the constitutional question. In a 1907 case, Wilson v. Shaw, Justice David Brewer wrote that Congress had the power "to construct interstate highways" under the constitutional right to regulate interstate commerce.

Fourth, the founding of the American Association of State Highway Officials (AASHO) in December 1914 gave the states an effective voice for advocating a national road improvement program.

And finally, the right man appeared on the scene. He was Logan Waller Page, who, in 1905, became director of the Office of Public Roads (OPR). Page was a scientist who embodied the growing Progressive Era (1900-1920) spirit of his times. He believed that scientific experts could best address the nation's road problems by applying apolitical judgment, based on irrefutable data, free of political taint and corrupt influence.

Page was a bitter foe of what he described in 1911 as "the cheap charlatanism of the professional promoter and the bungling efforts of the well-meaning but uninformed citizen." Throughout his tenure, while building the OPR into the national leader in the science of road building, Page exhibited prickly impatience with those who failed to live up to his standards.

In 1912, the growing need for an increased federal role was reflected in passage by the House of Representatives of a good-roads bill by a vote of 240 to 86. Introduced by Rep. Dorsey W. Shackleford of Missouri, the bill proposed a $25 million rental plan whereby the federal government would make a "rental" payment to the counties for the use of roads for mail delivery. The payments would then be used for road improvements that would help get farmers out of the mud.

The Senate failed to adopt the rental plan, in part because of the opposition of AAA and other motorist groups. As AAA saw it, a national road program should proceed, as railroad development had, by first building the most important lines, the long-distance arteries of commerce.

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MID-AMERICA TRANSPORTATION CENTER2015 MATC SCHOLARS CONFERENCELINCOLN, NE 68583-0851

ATTEN: 21ST CENTURY SCHOLARS

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FUTURE TRANSPORTATION WORKFORCE NEEDS

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FUTURE TRANSPORTATION WORKFORCE NEEDS

The American Recovery and Reinvestment Act of 2009 (ARRA) (Pub.L. 1115), commonly referred to as the Stimulus or The Recovery Act, was a stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama.

To respond to the Great Recession, the primary objective for ARRA was to save and create jobs almost immediately. Secondary objectives were to provide temporary relief programs for those most affected by the recession and invest in infrastructure, education, health, and renewable energy. The approximate cost of the economic stimulus package was estimated to be $787 billion at the time of passage, later revised to $831 billion between 2009 and 2019.[1] The Act included direct spending in infrastructure, education, health, and energy, federal tax incentives, and expansion of unemployment benefits and other social welfare provisions. It also created the President's Economic Recovery Advisory Board.

The rationale for ARRA was from Keynesian macroeconomic theory, which argues that, during recessions, the government should offset the decrease in private spending with an increase in public spending in order to save jobs and stop further economic deterioration.12

90 TE PROJECTS IN 53 COUNTIES

OVER $27MILLION IN NON-MOTORIZED TRANSPORTATION PROJECTS13

Statesboro Downtown Streetscape- Phase 1SCOPE: Streetscape which includes sidewalks, curb and gutter, drainage structures, pedestrian lighting, handicap access ramps, benches, trash receptacles, tree wells, landscape islands, shrubs and an irrigation system.

CONSTRUCTION COST: $952,074PROJECT SIZE: 1,500 Linear FeetUNIT COST: $635/LFCONSTRUCTION STARTED: 04/03/09PROJECT COMPLETED: 10/01/10

In this slide, you can see your industry training at work.

ARRA funding allowed us to place money on shovel ready TE projects

Georgia, like many states, has now adopted a COMPLETE STREETS POLICY.14

OBAMA ADMINISTRATION COLLABORATION: HISTORIC JOINT REPORT RELEASED

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.15

Strengthening Skill Training and Career Pathways across the Transportation Industry

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.16

Strengthening Skill Training and Career Pathways across the Transportation Industry

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.17

An aerotropolis, a term coined by Dr. John Kasarda at the University of North Carolinas Kenan-Flagler Business School, is urban development that emerges around a central airport to connect workers, suppliers, executives and goods.Many major cities, such as Paris, Seoul, Dubai and Dallas are capitalizing on the economic power of their airports, building on the aerotropolis concept.More than half of all Fortune 500 corporate headquarters are located within 10 miles of a US hub airport.More than 1,000 firms are located within the aerotropolis at Schiphol Amsterdam Airport.One company that has chosen the Hartsfield-Jackson area for its new home is Porsche Cars North America. And Joe Folz, Secretary and General Counsel of Porsche Cars North America, will serve as the Aerotropolis Alliances first chairman. We chose the airport area for our new headquarters and our Porsche Experience Center because we believe in the future of the Hartsfield-Jackson area and its importance to the Atlanta region, and because it literally brings the world to our door every day, said Folz. We have a tremendous opportunity to build upon the asset of having the worlds busiest airport to pursue development of our own world-class aerotropolis. I am pleased and honored to lead this effort.18

Strengthening Skill Training and Career Pathways across the Transportation Industry

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.19

Strengthening Skill Training and Career Pathways across the Transportation Industry

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.20

Strengthening Skill Training and Career Pathways across the Transportation IndustryJobs Created: 417,000 job openings from 2012 to 2022

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.21

Trucking Transportation

Highway Construction and Maintenance

Transit and Ground Passenger Transportation

Rail Transportation

Air Transportation

Maritime

SIX TRANSPORTATION SECTORS

Trucking Transportation (not including warehousing and logistics) Transit and Ground Passenger Transportation (including urban transitprivatelyand publicly operated2, charter bus, taxis, interurban and rural bus, and school andemployee transportation) Air Transportation (scheduled and nonscheduled air transportation, includingairport operations, aircraft maintenance, and other support activities) Highway Construction and Maintenance Rail Transportation Maritime Transportation (Deep sea, coastal, great lakes, and inland watertransportation, including ports)

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Strengthening Skill Training and Career Pathways across the Transportation Industry

GROWTH: Transportation is projected to add 417,000 jobs from 2012 to 2022 due to industry growth

Between 2012 and 2022, the average employment growth rate of 11 percent across transportation subsectors is similar to that of the entire economy (10.8%) and of the infrastructure industry (11%)

The fastest growth will occur on the West Coast, the Gulf Coast, the upper Mid-Atlantic, several Mountain States, and the Midwest

The largest number of job openings in transportation including all six subsectors is projected to be in the following cities: New York City, Dallas, Los Angeles, Houston, and Chicago

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.23

Strengthening Skill Training and Career Pathways across the Transportation Industry

RETIREMENT & ATTRITION:

In 2014, approximately 53% of current transportation workforce are 45 years or older. Transit and Railroad have the higher percentage of workers over 55 years old

From 2012 to 2022, an additional 4.2 million transportation workers will need to be hired to fill vacancies created by attrition

Unique scenarios:In smaller sectors such as railroad and maritime, there may be significant retirements, but number of job openings are not largeTrucking has the largest number of projected 2012-2022 job openings (2 million jobs)

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.24

Strengthening Skill Training and Career Pathways across the Transportation Industry

SKILLED LABOR SHORTAGE:

The jobs in the greatest demand are semi-skilled and skilled jobs in operations and maintenance. For every future job in central services or construction in the transportation industry, there will be an estimated two jobs in maintenance and operations.

Thirteen out of the top 20 highest demand transportation jobs pay above the median wage.

Preliminary analysis indicates that projected annual job openings are 68% larger than the number of students who are completing related educational programs, such as aviation

YOU ARE IN DEMAND!

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.

GEORGIA STORY: During one of the periods of non-funding in MAP21, a cost saving measure was to reduce the maintainance on roadsides.including not moving the ROW & Medians

The traveling public soon realized how vital maintenance and operations were with the unsightly vegatative growth and in some cases a reduction in site distance (creating safety hazard)

Led to contracts with local governments in some areas for mowing, etc.25

In 2014, the six subsectors in the transportation industry: 4 million employeesWith 1.7 million currently employed, Trucking has the largest share. Transit and Ground Passenger Transportation follows with 20% share of the total 817,000 employees

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SIX TRANSPORTATION SECTORS

The metropolitan layerreveals that much of theregional transportation jobgrowth is driven by growthin the large metro areaswithin those regions. The highest job growth intransportation, includingall six subsectors, willlikely be generated in NewYork City, Dallas, LosAngeles, Houston, andChicago between 2012and 2022, with more than10,000 new jobs. Of the top five metroareas mentioned above,Dallas has the highestconcentration and fastestgrowth in transportation27

Source: *U.S. Bureau of Labor Statistics.28

An aerotropolis, a term coined by Dr. John Kasarda at the University of North Carolinas Kenan-Flagler Business School, is urban development that emerges around a central airport to connect workers, suppliers, executives and goods.Many major cities, such as Paris, Seoul, Dubai and Dallas are capitalizing on the economic power of their airports, building on the aerotropolis concept.More than half of all Fortune 500 corporate headquarters are located within 10 miles of a US hub airport.More than 1,000 firms are located within the aerotropolis at Schiphol Amsterdam Airport.One company that has chosen the Hartsfield-Jackson area for its new home is Porsche Cars North America. And Joe Folz, Secretary and General Counsel of Porsche Cars North America, will serve as the Aerotropolis Alliances first chairman. We chose the airport area for our new headquarters and our Porsche Experience Center because we believe in the future of the Hartsfield-Jackson area and its importance to the Atlanta region, and because it literally brings the world to our door every day, said Folz. We have a tremendous opportunity to build upon the asset of having the worlds busiest airport to pursue development of our own world-class aerotropolis. I am pleased and honored to lead this effort.29

FUTURE TRANSPORTATION WORKFORCE NEEDSYOU

The Transportation industry touches every mode of life.

Communities are reliant upon transportation professionals to help them to live, work, move, and thrive.

Transportation projects enhance the quality of life and community pride.I would like to conclude with a short video that expresses how much a transportation project meant to one such community.30

LIGHTHOUSE VIDEO

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Strengthening Skill Training and Career Pathways across the Transportation Industry

SUMMARY OF CONCLUSIONS: The transportation industry is projected to add 417,000 jobs from 2012 to 2022 due to industry growth.

The new transportation workforce will have the opportunity to be a part of cutting edge innovations in the transportation industry

Well above median pay can be expected for many jobs within the industry; advance degrees increase the pay scales

YOU ARE IN DEMAND!.....Carpe diem (Seize the Day!)

The U.S. Department of Transportation provides over $51 billion in surface transportation construction funding each year to build, repair, and operate our Nations highways, bridges, and public transportation systems.

For every $1 billion in transportation infrastructure investments>>> 13,000 jobs are projected to be created over the next 10 years

Six (6) transportation sectors = hire up to 4.6 million workers1.2 times the current transportation workforcein the next decade, due to growth, retirements, & attrition.32

FUTURE TRANSPORTATION WORKFORCE NEEDS

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FUTURE TRANSPORTATION WORKFORCE NEEDS

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