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Supply & Demand of Logistics Workforce and Education The Logistics of Education and Education of Logistics Exploring the Supply and Demand of the Logistics Workforce Presented by: The Georgia Center of Innovation for Logistics THE LOGISTICS OF EDUCATION & EDUCATION OF LOGISTICS: EXPLORING THE SUPPLY AND DEMAND OF THE LOGISTICS WORKFORCE Executive Summary 3 Why Georgia 4 Map of Logistics Providers 2011 Pew Center Report The Logistics Education Spectrum 7 Challenges in Logistics Education USDOL Competency Model SCTAI Overview of Supply Chain Management Demand Side of the Equation 12 Standard Occupations Codes (SOC) Logistics Sub-Categories Defined Projected Employment: 2008 - 2018 Percent Change of Employment: 2008-2018 U.S., Southeast, Georgia Major Port States Annual Job Openings U.S. & Georgia Supply Side of the Equation 18 Classification of Instructional Programs (CIP) Codes Current Completion Totals Southeast Distribution of Completions Completion Totals by Job Category Completion Totals by Region Current Selected Program Rankings 22 National Rankings (U.S. News and World Report) International Programs Georgia Logistics Education Inventory 26 Types of Offerings in Georgia Map of Educational Institutions Complete Listing The Bottom Line 28 National Logistics Supply and Demand The Gap – U.S. & Georgia Ideas for Increasing Supply Summary GeorgiaLogistics.com | 2 EXECUTIVE SUMMARY Logistics plays an increasingly complex and critical The better connected this logistics ecosystem, the role in corporate operations and competitiveness, more efficient, cost-effective, secure and reliable the and companies must hire an educated and properly movement of their products can be. This can equate trained workforce in order to grow. What workforce to improved margins for the shipper and potentially supply is coming from our educational systems, and translate to lower prices for consumers. what overall demand will there be for them? GENERAL LOGISTICS COST BREAKDOWN The Georgia Center of Innovation for Logistics, a GENERAL LOGISTICS COST BREAKDOWN division of the Georgia Department of Economic Development, has released new research showing that based on U.S. Department of Labor data, the 9% Transporation United States will have approximately 270,200 22% Transportation logistics-related job openings that will need to be 49% Warehousing filled every year from now until 2018 to keep up with Warehousing projected industry growth. The State of Georgia has Inventory Carried 20% Inventory Carried put extensive resources into increasing the number of trained workers available for the state and the CustomerCustomer Service Service country, including logistics programs from the high school level to Ph.D. programs. This “Logistics of Education & Education of Logistics” report explores the supply and demand of the logistics workforce, These logistics costs can represent upwards of 10% how they are trained and the potential gaps the of a company’s total revenue. Every supply chain industry may see in the future. is unique in its requirements to move products to customers and with this individuality comes added What is logistics? A fairly simple question, but complexity and logistics cost. For example, the one with a complex and seemingly ever-changing logistics of moving pharmaceuticals or biomass fuel answer. Perhaps a better question is… What isn’t pellets is markedly different than traditional consumer logistics? product goods and can see logistics spends that consume 40-50% of total sales and revenue. No matter where we go, how we get there, where we shop, or what we buy, logistics plays a vital role in One area of current and future need across any making it all happen. The truth is that logistics is one company or logistics operation is the demand for a of the world’s largest, most complex, but sometimes well trained and skilled workforce. This report will one of the best kept secrets of industries. It is a focus on this element and begin to explore the supply foundation that impacts companies of all types and and demand of the logistics workforce, how they sizes, as well as everyday consumers, whether we see are trained, and the potential gaps the industry may it in action or not. In fact, logistics is really not just see in the future. Against this backdrop, the report an industry, it is an ecosystem in which all sectors will further drill down into the workforce supply and and participants rely on one another to move freight demand for Georgia and compare its standing in from Point A to Point B. This includes companies that the Southeast (defined for this report as Georgia, provide logistics services as well as those that are Tennessee, Alabama, North Carolina, South Carolina, enabled by the use of logistics to move products to and Florida) and the United States. their customers, or raw materials to a manufacturing plant, and in 2011, U.S. businesses spent $1.3 trillion on logistics-related costs to make all this commerce flow. GeorgiaLogistics.com | 3 KEY REPORT FINDINGS: • The sample of U.S. logistics employment • Enhanced opportunity for internships referenced in the analysis totaled 2.25 million specifically aimed at providing real-world logistics (in 2008) across six custom sub-categories: experiences. Logistics Operations, Industrial Engineering, • Better coordination and support for technical Warehouse & Distribution Labor, Trucking, colleges, via existing collaboration and through Freight Rail, and Air Cargo Supervisors. increased funding and scholarship availability for • The logistics industry is expected to create students. 270,200 job openings per year that will need to • Reduced or eliminated hurdles for military be filled to keep up with the demand and growth personnel transitioning into civilian life, including of the overall industry. This means over one leveraging existing relevant training and million job openings total nationwide over the certificates. next four years (2013-2016). • Enhanced marketing and promotion of the • The nation’s 7,642 educational institutions entire spectrum of logistics education. currently generate 75,277 formally trained, degreed or certified workers each year. This will fill about 28% of the related job openings that WHY GEORGIA? are expected to be made available every year. • Every year, Georgia issues over 51% of all the Georgia is home to 11,000 providers of logistics truck driving certificates in the southeast; this services, from core transportation and facilities, to equates to 1 out of every 8 for the entire Nation. third-party logistics and software providers, and Georgia also graduates 46% of the industrial ranks as the fifth largest overall logistics employer engineers in the Southeast every year. in the nation (see map below). Companies like Delta Air Lines, UPS, SAIA, RedPrairie and Manhattan • Georgia’s logistics industry alone will generate Associates are headquartered here, along with 9,500 job openings per year, each year that will major consumers of logistics such as Home Depot, need to be filled. Coca-Cola and Gulfstream. In total, close to 33,000 • Logistics employment in Georgia is projected companies critically rely on the efficient flow of to grow five percent more than the U.S average freight to operate their business. Additionally, every 18% vs. 13%) and nearly triple the Southeast sector of logistics is supported by active trade average, far exceeding the growth of other associations, and Atlanta is a popular location for leading seaport states of New York, Washington many major logistics industry events. State, California, and Texas. • Every year, Georgia issues more than 51% of all It is due to this industry cluster and enviable list of the truck driving certificates in the Southeast; logistics infrastructure assets that Georgia named this equates to one out of every eight certificates logistics and transportation a strategic industry for the entire nation. Georgia also graduates 46% and made it a focus for job creation and growth. of the industrial engineers in the Southeast every As such, examining Georgia’s position within the year. broader national demand provides key insights into areas of need and opportunity both for Georgia and the Southeast. In light of the fact that logistics POTENTIAL SOLUTIONS FOR INCREASING employment growth in Georgia is expected to SUPPLY INCLUDE: outpace the U.S. average, the state must prepare a workforce to meet the high demand. • Documentation of logistics as an independent industry sector on the federal and state level. • Earlier visibility of logistics in the education process, both in technical/career high schools and colleges. GeorgiaLogistics.com | 4 CORE, RELATED AND SUPPORT INDUSTRIES BY EMPLOYMENT SIZE LEGEND Large >250 Medium 20-249 Small 10-19 Micro 1-9 GeorgiaLogistics.com | 5 WHERE STATES STAND: JOBS AND COMMERCE SOURCE: Pew Center on the States and the Rockefeller Foundation, 2011. 2011 PEW CENTER REPORT: WHERE STATES STAND In a 2011 report released by the Pew Center on the States and the Rockefeller Foundation, all 50 states were graded across a range of categories including safety and infrastructure preservation, mobility and access, environmental stewardship, and jobs and commerce. In the category of jobs and commerce, which analyzed the impact of a state’s logistics strength and its relation to economic development, Georgia was the only state in the nine southeastern states to be graded as “Leading the Way.” Georgia was also one of only 13 states categorized as “Leading the Way” on average across all categories combined. GeorgiaLogistics.com | 6 THE LOGISTICS EDUCATION SPECTRUM The broad reach of the logistics industry is accompanied by the need for a wide spectrum of trained workforce to fill the range of job functions. This spectrum includes technical high schools and colleges, post-secondary and graduate- level programs, as well as professional industry certifications. Logistics has always been a part of any successful business model, but logistics-related classes or even degrees are often incorporated into different departments such as marketing. As the economy and global marketplace has evolved, so has the field of logistics. Today’s logistics professionals are facing unprecedented challenges including (1, 2): • Both domestic and global competition.
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