Training Workers to Advance II

submitted 11-12-2009, webmaster

The Need:

According to an impact study created by North Central State College, a local two-year college serving the four-county region, the counties in the proposed four-county region are among eight of the lowest ranking counties in Ohio for per capita personal income growth. According to the same study, Crawford, Richland and Huron counties are the only counties outside the Appalachian region marked as “distressed”, a distinction that is based on criteria such as poverty, unemployment rates and personal income. Using the Economic Modeling Software, Inc. Input-Output Model, North Central State College has identified the following “ripple effect” as a result of the recently announced closing of the GM Stamping Plant in Mansfield, Ohio: a) a combined loss of over 2,300 jobs (nearly two jobs for every one at GM) with job losses in local government, restaurants, hospitals, supermarkets, machine shops, janitorial services, health care offices, and religious organizations; and b) an annual loss of earnings of $132 million.

Similarly, an impact study created by the University of Michigan, cited the economic cost of the loss of the GM Stamping Plant to the region as a loss of $390,000,000 in annual wages and a loss of $1,170,000,000 annually to the local economy. According to the University of Michigan impact study, the region will suffer the following economic development effects:

a) large, vacant Brownfield facilities;
b) loss of industrial tax base;
c) high unemployment;
d) an increase in foreclosures and vacant/abandoned houses;
e) closures of businesses that cater to the plant/industry;
f) shrinking personal property tax rolls; and
e) loss of talent/workforce.

Within the same study, the University of Michigan identified the following impact on the region’s physical and mental health:

a) increase in substance abuse;
b) increase in suicide rates;
c) increase in domestic violence;
d) increase in emergency room visits (due to loss of health insurance);
e) increase in mental health issues (and the need for assistance);
f) increase in need for homeless shelters/food banks; and
g) increase in stress on families and children.
 

The Project:

Within the four-county region, the intent is to train 1,000 individuals, with 60% being dislocated workers and 40% being incumbent workers. Potential dislocated workers may or may not have participated in Rapid Response activities tied to a dislocation event. Dislocated workers may be referred for the training through local One Stop centers or may be referred through employers or economic specialists.

Although emphasis will be placed on training dislocated workers through this project, companies and workers at risk of layoff will be identified in an effort to provide necessary training to avert the potential lay offs. Companies targeted for incumbent worker training will be those companies that have a need for training in advanced manufacturing, alternative energy, health care and information technology. The Project Coordinator will work closely with economic development specialists in the four county region. The project is supported by the Ashland Area Council for Economic Development, the Crawford County Economic Development Partnership, Inc., the Norwalk Economic Development Corporation (Huron County) and the Richland County Board of Commissioners.

Potential dislocated workers and companies will reside in the four-county region—Ashland, Crawford, Huron and Richland counties. Potential dislocated workers may be at various skill levels and educational levels. Every effort will be made to train workers for positions within the four-county region. Potential companies must be located in the four-county region with the majority of their employees residing in the four-county region.

Within the scope of this project, all dislocated workers will be assessed using WorkKeys. Additionally, the region will use the Economic Modeling Specialists, Inc. (EMSI) Jobfinder tool to match dislocated workers to potential positions by identifying transitional skills and short-term training needed to upgrade the workers’ skills to allow for seamless movement into the identified positions. Every effort will be made to identify potential dislocated workers to train for positions with local employers.

Grant allocations will be provided by county based upon population percentages. Although allocation amounts will be established, funds may be transferred within the four-county region based on need. Training applications (incumbent worker training and dislocated worker customized training applications) will be reviewed by a committee comprised of economic specialists in the region. The review committee will determine the appropriate employer match based on need, financial solvency, etc., with match requirements being set at 25%, 15% or 10% of the cost of training. All efforts will be made to utilize training providers who have been approved and are listed on the state Eligible Training Provider list. Additionally, the region will cap the total cost of training at $150 per hour (instructional fees). Curriculum development and travel costs, etc. will be evaluated on a case-by-case basis.

Budget:

The following chart depicts the breakdown of the proposed budget.

Reporting:

Dislocated Workers deemed eligible for training will be determined WIA eligible (according to all relevant Local Area 10 policies) and will be entered into the SCOTI system as participants. Individuals receiving incumbent worker training will be determined eligible (according to all relevant Local Area 10 policies) and will be entered into SCOTI using the mini registration.
 

Project Outcomes:

Dislocated Workers
• Increase the potential for higher wages
• Enhance employment opportunities (entered employment)
• Regional skill recognition/certification

Incumbent Workers
• Increase promotional opportunities
• Enhance wage earning potential
• Enhance value-added potential to company

Employers
• Increase financial viability
• Increase financial stability
• Increase competitiveness
• Increase productivity

For Further Information:

Sharlene Neumann, Director Richland County JFS - (419) 774-5401
Lori Bedson, Assistant Director, Richland County JFS - (419) 774-5403
Bob Zettler, Workforce Consultant (419) 755-5682