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Tim Horst Program Manager Gulf Coast Workforce Development Initiative Tim Horst Program Manager September 30, 2006 Overview 1 Business Roundtable Members A. O. Smith Corporation Computer Sciences Corporation Hewlett-Packard Company Praxair, Inc. ABB Inc. ConocoPhillips Home Depot, Inc. PricewaterhouseCoopers LLP Abbott Laboratories Convergys Corporation Honeywell International, Inc. Principal Financial Group Accenture Ltd. Corning Incorporated HSBC - North AmericaHumana Inc. Procter & Gamble Company Air Products and Chemicals, Inc. Crane Co. IBM Corporation Prudential Financial AK Steel Corporation CSX Corporation Ingersoll-Rand Company Rockwell Automation, Inc. Alcoa Inc. Cummins Inc. International Paper Company Ryder System, Inc. Allison, Jr., Herbert M. DaimlerChrysler Corporation International Textile Group SAP America, Inc. Allstate Insurance Company Dana Corporation ITT Industries, Inc. Sara Lee Corporation ALLTEL Corporation Deere & Company J.P. Morgan Chase & Co. SAS Institute Inc. American Electric Power Company, Inc. Deloitte & Touche USA LLP Johnson Controls, Inc. Schering-Plough Corporation American Express Company Delphi Corporation Kerr-McGee Corporation Schneider National, Inc. American International Group, Inc. Dow Chemical Company KPMG LLP ServiceMaster Company Ameriprise Financial Duke Energy Corporation Lehman Brothers Holdings Inc. Siemens Corporation Amgen Inc. DuPont Liberty Mutual Group Southern Company Applera Corporation Eastman Chemical Company Lockheed Martin Corporation Springs Industries, Inc. Arch Coal, Inc. Eastman Kodak Company Marsh & McLennan Companies Sprint Nextel Archer Daniels Midland Company Eaton Corporation McGraw-Hill Companies St. Paul Travelers Companies, Inc. ArvinMeritor, Inc. EDS MeadWestvaco Corporation State Farm Insurance Companies Ashland Inc. Eli Lilly and Company Medco Health Solutions, Inc. Sun Chemical Corporation AutoZone, Inc. EMC Corporation Merck & Co., Inc. Sun Microsystems Baxter International Inc. Engelhard Corporation Merrill Lynch & Company, Inc. Tenneco Automotive Incorporated Bechtel Group, Inc. Equity Office Properties Trust Metropolitan Life Insurance Texas Instruments Incorporated BNSF Railway Company Ernst & Young, L.L.P. Morgan Stanley Textron Incorporated Boeing Company Exxon Mobil Corporation Motorola, Inc. TIAA-CREF BP America Inc. Fannie Mae Nasdaq Stock Market, Inc. Tyco International Ltd. Brink's Company FedEx Corporation National Gypsum Company Tyson Foods, Inc. Carlson Companies, Inc. Fisher Scientific Int'l., Inc. Nationwide Union Pacific Corporation Case New Holland Inc. Fluor Corporation Navistar International Corporation United Technologies Corporation Caterpillar Inc. FMC Corporation New York Life Insurance Company Verizon Communications Cendant Corporation Ford Motor Company Norfolk Southern Corporation W.W. Grainger, Inc Ceridian Corporation FPL Group, Inc. Northwestern Mutual Life Insurance Company Washington Group International, Inc. Chevron Corporation General Electric Company Nucor Corporation Waste Management, Inc. Chubb Corporation General Mills, Inc. Office Depot, Inc. Western & Southern Financial Group CIGNA Corporation General Motors Corporation Owens Corning Weyerhaeuser Company Cinergy Corp. Goldman Sachs Group, Inc. Pactiv Corporation Whirlpool Corporation Citigroup, Inc. Goodrich Corporation Peabody Energy Corporation Williams Companies, Inc. CNF Inc. Hartford Financial Services Group Pfizer Inc Wyeth Corporation Coca-Cola Company HCA Inc. PPG Industries, Inc. Xerox Corporation YRC Worldwide Inc. Unprecedented Damage 2 Clean-up Still On-Going Reconstruction 3 Post-Katrina: Overriding Concerns Unprecedented needs 5.9 million people affected; 19% below the poverty line Limited302,000 local housingreconstruction units destro capability Shortage of qualified construction workers even Alignmentbefore between Katrina gove and facility owners to: Strengthen local skills and commercial capability Speed reconstruction Ensure long-term recovery and growth yed or badly damaged rnment, contractors, Regional Craft Shortages (“demand”) 14000 12000 2005 Estimated Craft Demand by State 10000 8000 6000 Craft Demand 4000 2000 0 Aug-04 Nov-04 Feb-05 May-05 Aug-05 Nov-05 Feb-06 May-06 Aug-06 Time Line Nov-06 Feb-07 TX May-07 TN Aug-07 SC Nov-07 NC Feb-08 25000 MS May-08 LA Craft Demand by State with Katrina Effect 20000 GA FL AL 15000 10000 Craft Demand 5000 0 Aug-04 Nov-04 Feb-05 May-05 Aug-05 Nov-05 Feb-06 May-06 Aug-06 Time Line Nov-06 Feb-07 TX May-07 TN Aug-07 SC Nov-07 NC Feb-08 MS May-08 LA GA FL AL 4 Craft Shortages How Big a When Will it Shortage? Hit? 10,000? December ’06? 20,000? March ’07 50,000? June ‘07 100,000? Or, is it already 200,000? here? Mitigation Strategies Letters of intent signed with local contractors Contractor commitment to supply key project team members and 1/3 to 1/2 of its normal craft workforce for upcoming work Aggressive local recruiting and training programs Compensate trainees while in training Accelerated skills specific training Craft recruitment and retention incentives Sign-on bonus Job completion bonus Enhanced craft benefits (per diem, gas money, relocation benefits) 5 Construction Industry Experience Thousands of indigenous people trained each year in construction trades and management around the world Marathon/Bechtel Training Center in Malabo, Equatorial Guinea, 2005 Why Train? What if we do nothing and let the problem solve itself? 6 Key Components of a Successful Program Public-Private partnership between governments, owners, and contractors Maximize local hiring Train local workforce in the skills needed for reconstruction Adjust the plan as conditions change Facility Owner Interests Among impacted Re-build damaged Business Roundtable facilities member owners: Air Products American Express Train workers BP CNF CSX Chevron Employee housing Exxon Mobil International Paper JP Morgan Chase Help local National Gypsum Norfolk Southern economy Procter & Gamble Schneider National Southern Company Yellow Roadway 7 Initiative Vision Support nation’s goal to re-construct areas devastated by Hurricane Katrina Provide meaningful employment and career opportunities for local residents Assist people who have been displaced as a result of the hurricane to return to their home locations Attract additional qualified workers into the construction industry Manage the effort like a project Initiative Goal: Up to 20,000 displaced and/or disadvantaged workers trained to at least apprentice level by the end of 2009, implemented via public-private partnership Business Roundtable Request for Support 8 Construction Industry Roundtable Request for Support Contribution Commitments AIG Fisher Scientific International A.O. Smith General Electric Accenture JPMorgan Chase Air Products and Chemicals McKesson American Electric Power (AEP) NCCER American Express National Gypsum (CD Spangler Associated Builders & Contractors Foundation) Associated General Contractors PB Foundation (Parsons Brinckerhoff) BE&K Pfizer Inc. Bechtel Corporation Rohm and Haas Company Business Roundtable Shaw Group Chevron Corporation Sprint Foundation (Sprint Nextel) Dow Chemical Co. St. Paul Travelers Companies Duke Energy Corporation Washington Group Int'l DuPont Xerox ExxonMobil Fannie Mae Additional contributions pending FedEx internal approvals 9 Training Project Use existing industry-standard training curriculum, processes and facilities to deliver training NCCER training curriculum ABC training schools Local community colleges Building trades training centers Only train workers for real jobs as requested by contractors Provide targeted marketing and communications to support recruitment Use government funded scholarships and grants Small, disadvantaged firms Local hiring Organizations American Association of Community Louisiana Department of Labor Colleges Louisiana Technical and Community Associated Builders and College System Contractors, Inc. (ABC) and local Louisiana Recovery Authority chapters Louisiana Office of the Workforce Associated General Contractors Commission (AGC) of America and local Lake Area Industry Alliance chapters Mississippi Construction Education Building and Construction Trades Foundation Department, AFL-CIO and its affiliates Mississippi Department of Employment Security National Construction Alliance (NCA) Mississippi Development Authority Business Roundtable Mississippi Governor's Office of Recovery & Renewal Construction Industry Roundtable (CIRT) Mississippi State Board for Community & Junior Colleges Construction Users Roundtable (CURT) National Center for Construction Education and Research (NCCER) Department of Labor National Petrochemical and Refiners Greater Baton Rouge Industry Association (NPRA) Alliance (GBRIA) Office of the Federal Coordinator Home Builders Institute for Gulf Coast Rebuilding 10 Project Focus Areas Owner company communications Organized labor and union construction company communications Federal and state government communications, engagement and lobbying Open-shop and Merit-shop construction company communications Training program standards and oversight Recruitment and targeted marketing Project finance Project Organization Chart Business Roundtable Larry D. Burton Gulf Coast Labor Workforce Business Roundtable Training Group Partnering with Program Sponsor Federal Government Recognized Industry Tim Horst Status Reporting Program Advisory Board Associations Program Manager Strategic Input on Project
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