Workforce Development Initiatives in

HoustonOctober2006

Houston Business Roundtable Non-profit Business Association. Organized in 1973 as an association of construction users

to be the Owner’s voice in the construction industry. The Mission of HBR is to develop, share and promote

best practices that improve industry performance in areas of safety, health, environment, workforce skills, work quality, productivity and costs.

26 Owner Member Companies – Including most of the major refining and petrochemical companies in the greater Houston area (including Texas City and Freeport areas)

111 Subscribers – Including most of the major industrial contractors

Workforce focus is on Contractor Craft Labor

Workforce Development in Houston Area Workload Projections

Future Skill Shortages

Workforce Development Resources in Houston

CMEF Training Statistics

Current Initiatives in Houston

Future Plans and Ideas

HBR Craft Labor ForecastTOTAL WORKFORCE

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Maintenance Construction Turn Arounds

Forecast Comparison

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Sep 04 Jan 05

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Future Workload Expectations HBR member company workload expected to be

high for next two years

Golden Triangle Business Roundtable predicts the need for 20,000 additional craft persons to build Motiva and Valero refineries, LNG projects and offshore work

Eleven new power plant projects planned for East Texas

Recovery and rebuilding in hurricane impacted areas has and will continue to draw some labor from Houston

HBR Key Points of Agreement Voluntary Agreement recommending that Owners;

Use Contractors that are committed to Workforce Development. Pre-qualify and audit to verify.

Endorse the NCCER/NCCCO skills programs. Require craft persons to become qualified through formal

or upgrade training, certified through written testing and performance verified in the field or lab.

Maintain >10% of all site craft positions for helper-trainees. Include six cents per hour for all site hours in all labor

contracts to support CMEF’s education and credentialing programs.

Apply the KPA to all Maintenance, Construction and Turnaround work.

National Center for Construction Education and Research (NCCER) NCCER is a non-profit education foundation that develops

and maintains industry driven standardized craft training programs with portable credentials.

28 different Craft Curriculums and Skills Assessment tests (written) and 18 Craft Performance Verifications (demonstration of skills).

Houston Contractors played a major role in creating and funding NCCER and supplying Subject Matter Experts for program development.

Board of Trustees include representatives from several major Houston Contractors and Owner Companies, including Fluor, KBR, Zachry, ExxonMobil and Shell

Forty percent of all NCCER training and skills assessments have been administered in the greater Houston area.

Construction/MaintenanceEducation Foundation (CMEF)

Created by HBR and ABC more than ten years ago, replacing the former Merit Shop Trust.

Non-profit Education Foundation and the accredited Training Sponsor of NCCER programs in Houston.

Collects and distributes funding and administers formal and upgrade training and skills assessment programs.

Audits all programs and submits records for NCCER credentialing purposes.

Current Training & Credentialing Programs Formal NCCER training for helper-trainees is available at

night at five area community colleges - Lee, San Jacinto North & Central, Houston Community and College of the Mainland.

Upgrade training for journey-level craft workers available at HASC or at Plant Sites large enough to justify

Written Skills Assessments administered at three Safety Councils - HASC, TCCSC, ISTC Baytown and at CMEF Office and on-site.

Performance Verifications completed at work sites with Accredited Evaluator. PV Lab at Lee College has been piloted for Electricians.

The goal is for all industrial craft persons to be trained and become certified-plus, i.e., pass the written Skills Assessment test and complete Performance Verification

CMEF Statistics

*Estimate

Craft and Apprenticeship College Training Units

2001 2002 2003 2004 2005 *2006

Commercial 388 237 206 173 149 137

Industrial 1419 1473 1638 1760 1224 1588

Total 1807 1710 1844 1933 1373 1725

Skill Assessments            

Administered 1455 1700 4709 1800 2381 2198

Certified Written (Passed) 487 778 2220 735 1061 1193

CMEF Statistics

*Estimate

Upgrade Training 2001 2002 2003 2004 2005 *2006

OCF – Onsite   130 152 215 75 145

OFCF – Offsite (HASC)     12 167 173 48

Basic Training for Future Craft Professionals 75

Performance Verifications            

Performance Verified     50 662 450 324

Certified Plus     42 522 383 268

Other Programs/2001 2002 2003 2004 2005 *2006

Electrical 4 hr. CE Course         303 445

Graduation 63 57 46 66 83 53

CMEF/HBR Scholarship     15 23 61 25

High School Scholarship     6 28 56 86

CMEF Statistics

*Estimate

New Initiative - Basic Training for Future Craft Professionals

Brings new recruits into construction and maintenance and provides accelerated initial basic training, including NCCER’s core modules (including soft skills), basic safety orientation, introduction to craft specific tasks and a formal mentoring program.

Owners coordinate with site Contractors and commit to placing new recruits on site in a helper-trainee position expected to last one year.

Contractors recruit qualified candidates for specific crafts, screen and hire prior to starting training and assign experienced person to mentor new recruit on site.

Candidates attend two week, eight hour per day, Basic Training class and commit to continuing their craft training at a community college.

Mentors meet with assigned trainee and receives day of training.

Trainees are mentored and progress monitored for one year.

Basic Training for Future Craft Professionals

Participating Contractors – Owners to Date

Amber LPAustin IndustrialContech ISC Jacobs Field ServicesKBRLWLProtherm ServicesTurner IndustriesZachry Construction

Bayer DuPont ExxonMobil Houston Refining Lyondell Rohm & Haas Shell

Basic Training Trainees

June Pilot Class 23 of the original 27 Candidates are on the job and

attending craft training classes.

August Class 28 of the original 28 Candidates completed training

and all but one are currently working on sites and attending craft training classes.

Future Plans Class scheduled for Nov 27 – Dec 8 May expand to other colleges and hold classes more

frequently

Basic Training for Future Craft Professionals

August Basic Training Class

Texas Workforce Commission Grant HBR and CMEF initiated a Skills

Development Fund Grant through Lee College for $780,279 and was approved for 18 months starting in September

Grant will focus on craft training of incumbent workers and performance verification

Will allow CMEF some budget freedom to support other initiatives

Greater HoustonConstruction Careers Initiative Joint HBR/ABC/CMEF Effort

Formed to address craft workforce shortage

Reduce duplication of effort

Focused on attracting people into our industry and bringing people into the existing training pipeline of CMEF/NCCER programs

Construction Careers Executive Leadership Team (CCELT)

Construction Careers Industry Marketing Committee (CCIMC)

Construction Careers for Youth Committee (CCYC)

Each team and committee has an Owner and Contractor co-chair

Construction Careers InitiativeStructure

Construction Careers InitiativeSome Initial Ideas: Develop a centralized database of new recruits for construction

and recycled workers that Contractors could access and search Develop effective marketing tools and materials that will

emphasize careers in construction Two tiered approach for commercial & industrial Targeted recruiting – relationships (family, friends, associates),

returning military, college drop-outs, underemployed (food service, etc.)

Increase presence in area high schools Increase training scholarships at community colleges

Use of Non-English WorkersSurvey Results (March) Thirteen Owners responded and two Owners already allow

non-English workers on site Several companies indicated they were considering this

option Barriers identified – Safety procedures, training, signage,

work permits, emergencies No company indicated they were planning to translate site

training materials, plant signs, emergency communications, work instructions or work permits.

The two companies that allow non-English workers require bilingual workers in crews.

None are currently providing ESL for Contractors.

Non-English Workers, Follow-up Nine Owner companies met and most indicated they were seriously

considering use of non-English workers and several have active task groups developing plans & requirements.

The severe shortage of skilled labor is causing more companies to consider this option.

Several companies indicated they were getting push-back from their safety departments. 

The member company that has been using non-English workers for years has applied this to all crafts but most have been soft craft workers.  One of their contractors routinely has 10 to 20% non-English workers.  They also reported that no incidents have occurred where non-English was a factor. 

Another member company reported they had just implemented a non-English program in July through their scaffolding contractor. They are very interested in determining if the Contractor can deliver skilled labor as promised.

The group has asked HBR to be a clearing house of information about this issue.  Plans are to meet again in December to check progress made.  

Other Initiatives and Future Plans HBR sponsors an annual Excellence Award program to

recognize Contractors and Owners that support and are actively involved in KPA and WD initiatives.

ABC/CMEF/HBR is sponsoring a Construction Exhibition and Craft Championship at Lee College on October 27. 400 high school students are scheduled to attend.

Solicit more TWC funding to support Basic Training classes and other training initiatives.

HBR/ABC/CMEF are joining a larger coalition of Houston businesses, associations and colleges to address shortage of skilled workers in refining and petrochemical industry.

Other Initiatives Impacting Workforce

North American Substance Abuse Program – Standardized industry program implemented in 2004 and now over 100,000 Contractor employees enrolled with 6% excluded from working at participating Owner sites due to non-negative results.

North American Background Screening Consortium - being developed between Houston, Baton Rouge & New Orleans with plans to implement in early 2007. Data from other programs already implemented indicate that 5 to 10% of workforce might be excluded from participating sites.