TRWIB/LGA 1

Preparing for

Commercial & Industrial

Development February 9, 2007

Ron Painter

Chief Executive Officer, TRWIB, Inc.

TRWIB/LGA 2

Who we are

• Established through the Congressional Workforce Investment

Act (1998 ) that created more than 500 Workforce Investment

Boards (WIBs) across the country.

• An employer-driven, policy-making public entity serving

Pittsburgh and Allegheny County.

• Board Members are appointed by the Mayor of Pittsburgh and

County Chief Executive.

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Who we are

• We build bridges between many organizations to help our

region grow and prepare for changes in the workplace.

• We help align employer needs with job

seeker skills in Southwestern Pennsylvania.

• Through strategic workforce planning, we

help connect employers to training

providers, educators, and job seekers and

at the same time help impact public policy.

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What we do

• Help public officials, policymakers, and regional partners navigate the workforce investment system

• Facilitate workforce analysis and strategic workforce planning

– Convene forums that bring together stakeholders– Conduct employer and market studies– Oversee and advance Industry Partnerships

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Take advantage of the lessons that we have learned • About economic development and planning

Consider…The workforce skills needed

• Our approach to workforce development encompasses:

Location of workers – proximity to the development Getting to work from home – the physical environment

workers will encounter commuting to and from the workplace

Before and after work – the availability of public transportation, childcare, and affordable housing

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We can help connect the dots …

• Land use

• Transportation

• Economic and workforce development

And, help you … • Realize tax payer savings

• Provide quality of life benefits, and• Boost economic development for the region.

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What we have learned about economic development and planning

TRWIB Case StudyJob Access in the Cranberry Area StudyCritical issues affecting workforce and economic development in southwestern Pennsylvania

• The 2004-2005 study looked at issues that impact access to jobs in the Cranberry area, with broader implications for other suburban growth areas.

• The data reflects the need to address workforce issues at the planning stage.

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Key Study Findings

1: Cranberry exemplifies national trends in the suburbanization of population and job growth

2: There is evidence of a “spatial mismatch” between entry-level jobs and workers in the Cranberry area.

3: The spatial mismatch between jobs and workers imposes costs on area employers as well as on prospective employees and the broader community.

4: Employers believe that limited transportation options represent a barrier that prevents transit-dependent Allegheny County workers from filling entry-level jobs in the Cranberry area.

5: Other significant barriers cited by employers included low wages associated with entry-level jobs, undesirable work hours, lack of benefits, and lack of affordable housing and accessible childcare, as well as an overall lack of workers with specific skills.

6: The Cranberry area’s job-access challenges are one consequence of shortcomings in current land use planning and development practices.   

Note: Detailed study results are available on the TRWIB website/Reports.

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Finding 1: NATIONAL TRENDS - suburbanization

Cranberry area:

• 59% increase in population between 1990 & 2001• 80% increase in jobs between 1994-2001• Highly car-dependent and limited public transportation options• Little physical infra-structure for pedestrians

City of Pittsburgh: • 71 percent of Pittsburgh residents commuted to jobs in the suburbs • Entry-level workers remain in the city and often rely on public

transportation to get to work

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Finding 2: SPATIAL MISMATCH

• People living in this area are more educated than what is needed for the jobs in this area.”- Cranberry area retailer

• “Cranberry is saturated with entry-level jobs. We can’t get people to work in this area.” – Cranberry area employer

• “I tried to recruit employees from a company that closed its downtown Pittsburgh office, but people felt Cranberry was too far and had no good transit options.” – Cranberry area human resource director

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• Replacing an employee can be expensive with an estimated cost of 25-50 % more than the annual salary

–Of 100 Cranberry area employers interviewed: • 62 % had positions for which hiring qualified workers was difficult.

• 42 % had positions for which retaining qualified workers was difficult.

Finding 3: COSTS – employers, prospective employees, and the community

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Finding 4: LIMITED TRANSPORTATION OPTIONS - filling entry-level jobs with transit-dependent workers

• 71% employers had positions requiring non-traditional work hours; bus schedules didn’t accommodate those hours.

• Majority entry-level workers depend on public transportation to get to work

• 10% of all U.S. households lacked vehicles in 2000 and 65% of these households have incomes below $25,000.

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Finding 4: LIMITED TRANSPORTATION OPTIONS (cont’d)

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• Employer-selected factors affecting recruitment and retention of workers:

Shortage of workers 54% Transportation barriers 26% Employee work hours 20% Lack of affordable housing 16% Inadequate and/or un-affordable

childcare facilities 9%

Finding 5: SIGNIFICANT BARRIERS – employer perspective

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• Employer-selected factors affecting company’s reasons for locating :

Proximity to customers/suppliers 53% Road access 32% Property tax 7% Land value 3% Available workforce 1%

Finding 6: CONSEQUENCES – incomplete planning

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BIG PICTURE

• How do we respond to the changes in the

region?

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What we Know …

• Site selectors know

• Companies know

We need to …

• Build smarter

• Collaborate and cooperate

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Workforce Analysis a tool for your planning process

• How can local governments make informed choices about economic development?

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Planning from the workforce perspective

Industry/Occupation

• What industries plan to locate to the development?

• What occupations/positions will be needed?

• What skills will be needed for these types of occupations?

• If specialized skills will be needed, is the training infra-structure currently

available?

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Planning from the workforce perspective

Creating new jobs

• How many and what type of jobs will be created? (long-term/short term, full-time/part-time)

• What will the wage rates be? (are they living-wages?)

• What employee benefits will be provided? (healthcare, retirement, etc)

• Who will fill these jobs and where will they come from? (local/regional/national search or beyond; relocation /moving)

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Planning from the workforce perspective

Transportation

• Does public transportation infrastructure support the area?• Will the development disrupt established commuting routes? • Will public transportation to the development site be accessible

during the scheduled work hours? (know hours of operation, # shifts)

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Planning from the workforce perspective

Transportation

• Will new transportation infrastructure be necessary to accommodate workers and current residents?

• Who will pay for this new infrastructure?

• Is travel between bus stop and the work site pedestrian-friendly in terms of distance, topography, lighting and other safety?

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Planning from the workforce perspective

Childcare

• Are childcare facilities located near the development site?

• Do the hours of operation match the work schedules of the proposed development?

• Are the childcare facilities accessible by public transportation and during the hours of operation?

• If not, can changes be made to bus routes and/or schedules?

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Planning from the workforce perspective

Housing

• If workers will be relocating from outside the region, is there appropriate housing within a reasonable commuting distance of the proposed project site?

• Is there be a mix of housing types and values that can accommodate these workers?

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Thoughtful design and collaborative planning in:

– Land use – Transportation– Economic development and– Workforce development

interests

Thoughtful design and collaborative planning in:

– Land use – Transportation– Economic development and– Workforce development

interests

Tax payer savings Provide quality of life

benefits Boost economic

development for the region

Key Findings – Next Steps

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Let us know how we can help!

Thank you for your interest.

Ron Painter, Chief Executive Officer412.552.7090; rpainter@trwib.org

Vera Krofcheck, Mobility and Workforce Development Specialist; 412.552.7095; vkrofcheck@trwib.org

Let us know how we can help!

Thank you for your interest.

Ron Painter, Chief Executive Officer412.552.7090; rpainter@trwib.org

Vera Krofcheck, Mobility and Workforce Development Specialist; 412.552.7095; vkrofcheck@trwib.org