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Inflection Point Inflection Point: Supply, Demand and the Future of Work in the Pittsburgh Region A forward look at the coming transformation of work across the Pittsburgh region and its implications for employers, educators and workforce talent Prepared by: Burning Glass Technologies and The Council for Adult and Experiential Learning with: Allegheny Conference on Community Development AlleghenyConference.org 2016 INTRODUCTION The Allegheny Conference has been sounding an To be clear, we are at a critical moment for the future of Inflection is a change in form or pitch, and that is an apt employer demand. Real-time market insight across alarm for some time that the Pittsburgh region is on our region. As employers, we need to move from being metaphor for what we hope the impact of this report the entire economy is provided by Burning Glass the leading edge of a serious shortfall in our working simply consumers of talent, to becoming investors in will be on community conversations about workforce Technologies’ analysis of web-based job postings, age population, and that we have lagged behind other the labor marketplace. That means investing in training and opportunity. As you will read, we face very real offering current and detailed information about regions when it comes to inward migration. As the Chair and bridging what has been identified as a great divide challenges relative to future employer demand and the employer skill demands and nascent trends. To validate of the Conference’s Workforce Steering Committee, last between educators and employers so that we can trajectory of our overall demographics. However, for a these findings, focus groups were held with more than year I asked a working group to dive into this issue and align our labor supply and pipeline with the market region of our size we can lay claim to unequaled assets: 130 CEOs and industry leaders, including those in to examine our challenges and opportunities over the and where it is headed. It also means that we must act a diverse economy, a density of world class educational secondary and postsecondary education. next 10 years. as a region, rather than just as individual employers, institutions, a network of highly engaged corporate and to attract the high-skilled talent we will all need to civic leaders, and a long history of collaboration. These The findings in this analysis confirm that we are Inflection Point: Supply, Demand and the Future of Work compete. can be harnessed to meet our workforce challenges, entering a period of rapid transformation spurred in the Pittsburgh Region is the result of this effort, and just as we have done in the past with our environment by innovation and technological change across every should serve as a wake-up call and catalyst for all Business, education and civic leaders all have a role and our economy. industry. Our region is not unique in experiencing these employers, educators, civic leaders, and our current to play, to combine our resources and expertise on changes; but, if we embrace our history of working and future workforce. a shared path that will position us for progress and This forward looking examination of both specific together to develop and implement appropriate prosperity. employer demand and the characteristics of the strategies, we will create the conditions needed to The findings in this report are clear: Over the next region’s workforce and talent pipeline presents a ensure a prosperous future for our region. decade, the Pittsburgh region’s workforce will be I urge you to read this report with that view in mind fresh and nuanced picture, one we believe best entirely transformed due to retirements, growth and and to join us in our efforts to forge a stronger, more suited to engender a strategic and energetic I was pleased to chair a highly engaged Working Group occupational transitions that will require upskilling. competitive workforce for our future. community response. who informed and framed the execution of this work Technology will drive change and disrupt entire sectors, at every stage. The inclusion and diversity of their and every employer and worker must keep pace with Sincerely, Burning Glass Technologies and the Council for perspectives, and their shared commitment to the this change to remain competitive. Adult and Experiential Learning utilized multiple data Pittsburgh region, has enriched this work. sources for their analysis that allow them to capitalize The challenge is made greater by the fact that, as a on the strengths of each. The analysis is focused on Sincerely, regional workforce, our numbers do not add up. With Bill Demchak occupations – the actual jobs – rather than industry Baby Boomers now retiring, not enough skilled workers Chairman, President and Chief Executive Officer sectors, in order to give a more complete picture, to take their place and slow inward migration, the The PNC Financial Services Group, Inc. as industries comprise many different types of report estimates our region could be short by more occupations. Publicly available state and federal labor than 80,000 workers over the next 10 years if we just data has been augmented by two additional data Dmitri Shiry keep doing what we are doing today. The implications sources that provide a very specific picture of actual Managing Partner, Deloitte, LLP of that are substantial. We need to connect everyone to opportunity and a path to success, including the thousands who are un- and under-employed across our region. ACKNOWLEDGEMENTS This report was made possible by Demand Analysis Working Group Tammie Potvin Council for Adult and Experiential • Convergys • PITT OHIO generous funding by Allegheny Dmitri Shiry, Chair Principal, Deloitte LLP Learning, Chicago • Covestro LLC • Pittsburgh Council on Higher Conference on Community Managing Partner, Deloitte LLP Douglas Reynolds, PhD James Reddish, Associate • Duquesne Light Company Education Development Regional Investors Jen Crowley Senior Vice President, Assessment Director, Workforce & Economic • Eat’n Park Hospitality Group • Pittsburgh Technical Institute as part of Opportunity 2025, and Program Manager Lead, Tech Technology and Chief Technology Development • Elliott Group • Pittsburgh Technology Council through the input and expertise of Staffing, Operations and Strategic Officer, Development Dimensions Jade Arn, Senior Consultant, • Ellwood Group, Inc. • Plus Consulting, LLC the Demand Analysis Working Group Initiatives, Google International, Inc. Workforce and Economic • EQT Corporation • Point Park University and outside analysts, as well as Laura Fisher Kurt Schnieders Development • EverPower Wind Holdings, Inc. • PPG business, education and civic leaders. Senior Vice President, Workforce Senior Vice President & Chief • Expedient • Presbyterian Senior Care and Special Projects, Information Officer, DICK’S Report Design • FCG Solutions, Inc. • Quest Diagnostics Incorporated Allegheny Conference Allegheny Conference on Sporting Goods Steve Plummer • Federated Investors, Inc. • Range Resources Regional Funders Community Development Rick Siger Lead Account Designer, Deloitte LLP • FirstEnergy Corp. • Robert Morris University ATI Vicki Henn Director of Strategic Initiatives • Forbes Road Career & • Rosedale Technical College BNY Mellon Senior Vice President and Chief and Engagement, Industry and Education Focus Technology Center • S&T Bank Chevron Human Resources Officer, The Carnegie Mellon University Group Participants • Gateway Health Plan • Slippery Rock University Covestro LLC PNC Financial Services Group, Inc. Karl Sparre • A.W. Beattie Career Center • Giant Eagle, Inc. • Staffmark Deloitte LLP Stuart Hoffman Vice President, Talent Solutions, • Allegheny Health Network • Google • Summa Technologies FedEx Ground Senior Vice President and Chief Highmark Health • Allegheny Intermediate Unit • Healthcare Council of Western • The Hite Company FirstEnergy Corp. Economist, The PNC Financial Linda Topoleski • ATI Pennsylvania • The PNC Financial Services Giant Eagle, Inc. Services Group, Inc. Vice President, Workforce • American Eagle Outfitters • Hefren-Tillotson, Inc. Group, Inc. Highmark, Inc. Vera Krekanova Krofcheck Programs & Operations, • Aquatech International Corporation • Herbert, Rowland & Grubic, Inc. • Three Rivers Workforce Hillman Foundation Chief Strategy Officer, Three Rivers Allegheny Conference on • ASKO, Inc. • Highmark Health Investment Board MARC USA Workforce Investment Board Community Development • Big Burrito Restaurant Group • Independence Excavating, Inc. • Uber MSA Safety, Inc. Jennifer Krusius Guhan Venkatu • Boyden • Indiana University of Pennsylvania • UPMC Peoples Natural Gas General Manager, Uber Vice President and Senior Regional • Builders Guild of Western • Innovation Works • UPMC Enterprises PITT OHIO Lisa Kuzma Officer, Federal Reserve Bank of Pennsylvania • Jendoco Construction & • West Penn Power PPG Senior Program Officer, Richard Cleveland, Pittsburgh Branch • Carmeuse Lime and Stone Real Estate • Westinghouse The PNC Financial Services Group, Inc. King Mellon Foundation • Carnegie Mellon University • Joseph Wynn • Westmoreland County Schneider Downs & Company, Inc. Alison Lands Report Authors • Carnegie Mellon University CERT • KPMG Community College Senior Manager, Deloitte LLP Burning Glass Technologies, Boston • Catalyst Connection • Lenape Technical School • Winchester Thurston School Sue Mukherjee Dan Restuccia, Chief Analytics • Chatham University • MARC USA • Wyndham Grand Pittsburgh Assistant Vice Chancellor, Officer • Chevron
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