“Blue Sky” A Strategy For Pensacola Area Economic Development

JP&A July 2014 prumatico@bellsouth.net

Economic Development - Mixed Results In Company Recruiting

“…efforts by states at job poaching from other states

reflect a complete lack of understanding as to where

job creation really comes from. What distinguishes

one state from the other in success in creating jobs

is its ability to stimulate entrepreneurship and to

make sure that those fast growing companies

actually succeed at what they are doing..”Michael Mazerov – Center on Budget and Tax

Policy,

Washington D.C. June 2014

Economic Development - Mixed Results In Company Recruiting

Florida’s Small Business Development Center reports that despite the considerable investment to recruit new companies to Florida, the effort resulted in less than 2% of the new jobs created in 2010.

Dr. Tom O’Neal, associate Vice President for Research and Commercialization at University of Central Florida and Executive Director of the Florida Economic Gardening Institute (GrowFL) reports that it was 0.03%.

Despite the lack of ROI, marketing the area to industry must be done. Pensacola’s recent success confirms that. However, new industry recruiting can be compared to the Prisoner’s Dilemma, a paradox in

rational self interest.

The Pensacola Area’s Economic Development Paradox

The area’s quality of life factors attracted several fast growing,

successful companies.

Their growth is hampered by the lack of experienced talent.

High skill, mid level professionals do not relocate to the Pensacola

area because of the lack of opportunities for a spouse or a Plan B.

The Pensacola MSA is not attractive to new industry because of the

lack of an established highly skilled workforce in their sector.

New job creation hinges on a skilled and experienced workforce!

Pensacola Workforce Snapshot

• An attractive area to live, work and play

• Many successful and growing small companies

• Solid work ethic in workforce, students and retirees

• Excellent educational resources

• Employers need experienced talent to grow

• Exporting talent due to the lack of entry level jobs

• New company recruiting is workforce driven

• 30% of area workforce is underemployed

+’s

-’s

Pensacola MSA Employment By Sector 115,893 Total Number Of Employees Pie chart data from 2010 MSA Business Patterns, US Census (First Quarter ending March 2012)The Pensacola Metropolitan Statistical Area (MSA) includes all of Escambia and Santa Rosa Counties

How Would A Business Think About Pensacola’s Future Workforce?

Large companies plan for their future workforce requirements. Recruiting and training are continuous processes.

Coca-Cola has 130,600 employees; Dell 108,800;

Exxon 75,000; HJ Heinz 32,000; Humana 43,400;

McKesson 43,500; Intel 105,000; Apple 80,000

The Pensacola MSA has 115,900 employees

A business approach to future workforce planning today will assure the Pensacola area’s success in the future.

A Simplified Business Approach

• Identify The Current Workforce Supply In Key Sectors

• Develop A Demand Forecast And Set Future Goals

• Identify Workforce Skill Gaps And Surpluses

• Build The Skill Acquisition Plan For Pensacola

Training

Recruiting

• Implement The Plan

Discussion Outline

• Workforce Led Economic Development

• Skill Shortages Impact Local Job Creation

• Skill Shortages Impact Company Recruiting

• “Blue Sky” A Solution Used in DOD Contracting

• “Blue Sky” Recruiting A Solution in Job Creation?

• A “Blue Sky” Approach to Economic Development

• Future Workforce Examples

• Project Blue Sky Proposal

• Potential Partners, Funding and Schedule

A Successful Workforce Based Economic Development Model

• Vibrant Local Economies Are Based On A

Highly Skilled And Specialized Workforce

• Established Industry Clusters Are Attractive

For Business Relocation and Expansion

• Locating Operations To An Established

Workforce Is Low Risk But High Cost

Skill Shortages Impact Job Creation

• Limits Existing Company Organic Growth

• Fewer Entry Level Jobs For The Local Workforce

• Potential Worker Interest To Relocate To A

Developing Area Like Pensacola Is Low

• Limits Area Wide Economic Growth

• Jobs And Workers Go Elsewhere

Skill Shortages Impact New Company Recruiting To The Area

• Lack Of An Available Workforce Is A Negative

• Workforce Training In Specialized Skills Takes Time

and Investment

• Workforce Recruiting and Relocation Cost Is High

• An Established Highly Skilled Workforce Is A Strong

Positive When Recruiting Companies

“Blue Sky”

• Capturing New Business Without An Established

Workforce Is A Common Problem In Business

• Defense Contactors Submit Proposals With Resumes

Of Key Personnel Who Are Not Yet Employees

• Hire Is Contingent On The Contract Being Won

• Recruiting Is Done On A “Blue Sky” Opportunity Basis

• A Virtual Community Of Highly Skilled Workers Is

Created And Ready To Be Engaged.

“Blue Sky” Recruiting Part OfA Solution For Job Creation?

What if…….

We Inventory Current Employer Skill Requirements In Key Sectors?

We Identify Local Workers Who Are Looking For Opportunities, Currently Underemployed Or In Need Of Training?

We Recruit Highly Specialized, Experienced and Skilled WorkersFor Current And Future Employment Opportunities?

Economic Development Professionals Had A Talent Pool Ready To Relocate To Pensacola?

Future Workforce Vision….• Set A Goal For New High Skill – High Wage Jobs

• Created By Existing and New Companies

• Growing, Vibrant and Successful Companies

• Industry Sectors Could Include:• Aerospace• Information Technology• Manufacturing• Medical Equipment and Services• Research And Development

Based On A Future Workforce Community

Achieve The Vision….

• Create A Workforce Web Site And Resume Database

• Assemble Existing and Potential Company Requirements

• Utilize State Of Florida, UWF, SBDC and Chamber Data

• Market The Pensacola MSA Future Workforce Nationally

• Compile Resumes Of Highly Skilled Workers

• Identify Prospective Employers For Relocation To Pensacola

• Match Workers To Companies

• Match Local Workers To Skill Training and Opportunities

Future Workforce Examples

• Huntsville, AL conducted workforce recruiting campaigns in the Southeast.

• Columbus, NE is organizing outreach programs and rallying business leaders

to represent the area at recruiting events.

• Kansas City, MO is running a future workforce program to attract highly skilled

talent to their area.

• Reno – Tahoe, NV recruited talent from San Francisco and other California

cities to build their tech community and create jobs.

• Vermont conducted tech recruiting in Boston and other cities.

• Wyoming conducted blue collar recruiting in the mid west.

• Nashville and Mid Tennessee are marketing their growing technology sector

These communities are building their workforces of the future

Project Blue Sky Proposal

• Take The Lead On Job Creation

• Build A Pensacola Area Future Workforce Brand

• Create A Pensacola Workforce Website

• Create A Pensacola Workforce Resume Database

• Market The Area Through Career Web Sites, Job Boards,

Social Media And Regional Career Events

• Include Pensacola Future Workforce In Area Marketing

• Provide A New Compelling Workforce Solution

Potential Partners• Escambia County and Santa Rosa County Schools

• University of West Florida, Pensacola State College, Private Schools

• State of Florida – Career Source, Enterprise Florida, Grow Florida

• City of Pensacola – Office of Economic Development and Sustainability

• Greater Pensacola Area Chamber – Economic Development Team

• Santa Rosa County - Office of Economic Development

• Escambia County Commissioners – Economic Development and Tourism

• Private Groups – Impact 100, Innovation Coast, IT Gulf Coast, NWFMC

• A Consortium of Local Companies Serving As Ambassadors

Potential Funding• Escambia County - RESTORE Act Committee to evaluate / review projects

that are designed to improve the natural resources, job creation and economic development of the Gulf Coast region.

• State of Florida - Workforce Investment Act programs for adults, youth and displaced workers.

• City, Counties and Chamber – Economic Development and Workforce Development Grants

• US Department of Labor, Employment and Training Administration – Ready To Work Partnership Grants

• Lincoln, Kauffman and Other Private Foundations – Economic Development and Workforce Education Grants

• Area Employer Contributions

Project Blue Sky Schedule

Phase 1 – Within First 90 Days

Outreach To Potential Partners and Funding Sources

Identify Key Sector Talent Requirements

Implement A Workforce Web Site And Database Platform

Initiate A Regional Recruiting And Marketing Campaign

Phase 2 – 90 – 180 Days

Secure Long Term Funding

Begin Referring Candidates To Employers and Educators

Continuously Review And Improve Methodology

Project Blue Sky Risks

Issue RiskHow To

Avoid / Solve

Pensacola’s current opportunities don’t seem to attract solid candidates. Medium

Companies are recruiting, many without success. Opportunity marketing support will help them. Creating the vision of future opportunities is the goal of Blue Sky.

Companies may not support a recruiting effort for others or deem it necessary to attract new companies.

MediumGrowth based on a skilled workforce is a proven model. Involve them. Provide case studies and research to gain their support.

Local agencies do not have the money to fund new programs High

Job creation and worker training will ad value and relevance for local company growth and attracting new companies.

Won’t Blue Sky compete with area employment agencies. Low

Area employment agencies will be invited to participate and as sponsors have access to the database. There will be no competition for current openings.

Project Blue Sky Risks Continued…

Issue RiskHow To

Avoid / Solve

This is a good initiative for the Pensacola Chamber’s new economic

development organization.Medium

While Blue Sky recruiting will address new job creation, workforce and current company growth, resume confidentiality is not available under public records rules.

Local agencies are experiencing a decline in program budgets and have

existing programs to support.High

A new, powerful and relevant job creation and workforce development effort will attract positive attention and support.

Isn’t this program better suited for IT Gulf Coast or Innovation Coast? Low

The tech organizations are working on events such as iTEN Wired and Innovation Awards. Their event marketing will be helpful in attracting talent.

Adding jobs is a Pensacola priority High

Blue Sky will act on the current jobs dilemma; lack of experienced talent for growth, while supporting new company recruiting and workforce training.

The Death of Job Posting?

Zappos, Las Vegas, NV, an online clothing retailer,

stopped posting jobs!

Instead they are building virtual “Talent Communities”

Creating an “Insider” relationship with active and passive

candidates for future employment

Developments In Recruiting

Aggregating Jobs A New Trend?

Developments In Recruiting

LinkedIn is joining Indeed, Simply Hired and Monster by aggregating jobs.

LinkedIn employer members will have access to resumes and candidate profiles.

The new service will match candidates to career opportunities using Bright.com technology.

Talent Outreach Events

Industry Events, such as:PEX Manufacturing ExpoIAA Aviation Conference AtlantaUS Chamber Small Business

Career Fairs, such as:Austin Career FairChicago Career FairKansas City Career FairMinneapolis Career Fair

Industry Expo Ideas

Expand the Enterprise Florida expo booth to include future workforce opportunities include Florida Career Source and company ambassadors

Tourism Industry Expo Floor Display Ideas

Expand the Visit Florida expo booth to include future workforce opportunities include Florida Career Source and company ambassadors