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F I NA L REPORT
COMPETING WITH TALENT:
HIGH-TECHNOLOGY MANUFACTURING'S FUTURE IN GREATER PHOENIX

Prepared For:

Maricopa County Community College District and the Salt River Project

Prepared by:

Battelle's Technology Partnership Practice

December 2005

� 2005 Battelle Memorial Institute

Battelle Memorial Institute (Battelle) does not endorse or recommend particular companies, products, services, or technologies, nor does it endorse or recommend financial investments and/or the purchase or sale of securities. Battelle makes no warranty or guarantee, express or implied, including without limitation, warranties of fitness for a particular purpose or merchantability, for any report, service, data, or other information provided herein. Copyright 2005 Battelle Memorial Institute. Use, duplication, or distribution of this document or any part thereof is prohibited without the written permission of Battelle Memorial Institute. Unauthorized use may violate the copyright laws and result in civil and/or criminal penalties.

Final Report

Competing with Talent: High-Technology Manufacturing's Future in Greater Phoenix

Prepared For: Maricopa Community Colleges and the Salt River Project Prepared By: Battelle's Technology Partnership Practice

December 2005

Table of Contents

Page

List of Abbreviations .................................................................................................................................................. vi Executive Summary....................................................................................................................................................ix Section 1. Introduction ................................................................................................................................................ 1

Context ..................................................................................................................................................... 1 Industry Overview: Employment Structure and Concentration ............................................................... 2 Project Focus and Methodology ............................................................................................................... 4

Section 2. Maricopa Community Colleges' High-Tech Manufacturing Programs: Inventory and Issues .......... 7

Overview .................................................................................................................................................. 7 Overview of MCCCD's High-Tech Manufacturing Offerings................................................................. 8 Award and Graduation Trends ............................................................................................................... 10 Other Technical Schools and Institutions' Initiatives in High-Tech Manufacturing.............................. 17 Conclusion .............................................................................................................................................. 19

Section 3. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of MCCCD's Activities in Addressing High-Tech Manufacturing Workforce Needs ..................................................................................... 21

Strengths ................................................................................................................................................. 21 Weaknesses............................................................................................................................................. 23 Opportunities .......................................................................................................................................... 25 Threats .................................................................................................................................................... 26 Conclusion .............................................................................................................................................. 28

Section 4. Benchmarking and Competitive Positioning Analysis .......................................................................... 31

Overview ................................................................................................................................................ 31 The Benchmark Set ................................................................................................................................ 32 Conclusion .............................................................................................................................................. 52

Section 5. The Greater Phoenix Region's High-Tech Manufacturing Technician-Level Workforce: Current Needs and Future Requirements ............................................................................................................... 55

Summary................................................................................................................................................. 55 Introduction ............................................................................................................................................ 56 Industry Perspectives, Issues, and Opportunities ................................................................................... 59 Demand Analysis for Talent: Current Needs and Future Requirements ................................................ 72 Technical Dimensions: Current Needs and Future Requirements.......................................................... 81 Skills Assessment: Current Requirements and Future Needs................................................................. 87 Summary............................................................................................................................................... 105

Section 6. Strategic Plan..........................................................................................................................................109

Vision and Mission............................................................................................................................... 109 Strategies and Actions .......................................................................................................................... 110 Implementation Plan............................................................................................................................. 128 Conclusion ............................................................................................................................................ 130

Appendix A. CIP Codes Used In Analysis .............................................................................................................A-1 Appendix B. Selected References ........................................................................................................................... B-1

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List of Figures

Page Figure 1.1. Project Work Plan ..................................................................................................................... 4 Figure 2.1. Distribution of Maricopa Community Colleges' High-Tech Manufacturing Certificates and Associate's Degrees, 1999�2004...................................................................................... 11 Figure 2.2. Distribution of Total Awards (1999�2004) by MCCCD Institution ....................................... 12 Figure 2.3. Distribution of Total MCCCD High-Tech Manufacturing�Related Awards (1999�2004), by Technician Educational Area ............................................................................................. 13 Figure 2.4. Distribution of Total MCCCD High-Tech Manufacturing-Related Awards (1999�2004), by Technician Educational Area and MCCCD Institution...................................................... 14 Figure 2.5. Program Detail of Engineering Technician Certificates and Associate's Degrees (1999�2004) ............................................................................................................................ 14 Figure 2.6. High-Tech Manufacturing Associate's Degrees Awarded by Regional Institutions............... 15 Figure 2.7. Total Awards, by Provider, 1999�2004 .................................................................................. 16 Figure 2.8. Total Awards, by Technician Educational Area and Provider, 1999�2004 ............................ 16 Figure 5.1. Expanding Technician Workforce, by Technician Type......................................................... 73 Figure 5.2. Expanding Technician Workforce, by Key Industry Segment................................................ 75 Figure 6.1. Enhancing the Talent Pipeline for Technical and Engineering Workers .............................. 114

List of Tables

Table 1.1. Importance of Manufacturing, Services, and "High-Tech" to Greater Phoenix Region ........... 3 Table 1.2. Regional Employment Structure for High-Tech Manufacturing............................................... 3 Table 2.1. Institutions, Programs, and Departments................................................................................... 8 Table 2.2. Key Maricopa Community Colleges High-Tech Manufacturing Programs.............................. 9 Table 2.3. Distribution of Total Awards, 1999�2004, by Technician Educational Area............................ 13 Table 3.1. Tuition and Fees--Full-Time Undergraduate at Associate's Degree-Granting Institutions............................................................................................................................... 23 Table 4.1. Benchmark Center Organizations and Focus............................................................................. 32 Table 4.2. Benchmark Center Programmatic Issues and Lessons Learned ................................................ 53 Table 5.1. Table 5.2. Table 5.3. Table 5.4. Table 5.5. Table 5.6. Table 5.7. Table 5.8. Table 5.9. Data Collection Results ........................................................................................................... 58 Use of Institutional Training Providers for Upgrading Existing Workforce........................... 68 Formal Internal Training Efforts ............................................................................................. 69 Training Plans and Funds ........................................................................................................ 69 Recruitment from Local Institutions ....................................................................................... 70 Percentages of Firms that Have Worked With MCCCD Colleges.......................................... 71 Working with Maricopa Community Colleges ....................................................................... 71 Career Awareness and Student Involvement........................................................................... 71 Estimated Current and Future Demand for Technicians--Totals by Key Segments .............. 72

Table 5.10. Technician Minimum Educational Requirements and Training Demand-- Totals by Key Segments.......................................................................................................... 74 Table 5.11. Advanced Materials--Estimated Current/Future Technicians and Training Demand............ 76 Table 5.12. Aerospace and Defense--Estimated Current/Future Technicians and Training Demand ...... 77 Table 5.13. Electronics and Instruments--Estimated Current/Future Technicians and Training Demand ................................................................................................................................... 78 Table 5.14. Information and Telecom Services--Estimated Current/Future Technicians and Training Demand ................................................................................................................................... 79 Table 5.15. Semiconductor and Computer Hardware--Estimated Current/Future Technicians and Training Demand..................................................................................................................... 80 Table 5.16. Breadth of Adoption--Current and Future Advanced Production and Operations Capabilities, Firms by Key Segment ....................................................................................... 81 Table 5.17. Breadth of Adoption--Current and Future Advanced Production and Operations Capabilities, Technicians by Key Segment ............................................................................. 82 Table 5.18. Breadth of Adoption--Current and Future Advanced Technologies, Firms by Key Segment ...................................................................................................................... 83 Table 5.19. Breadth of Adoption--Current and Future Advanced Technologies, Technicians by Key Segment ...................................................................................................................... 84 Table 5.20. Depth of Usage: Current and Future Advanced Production and Operations Capability ......... 85 Table 5.21. Depth of Usage--Current and Future Advanced Technologies.............................................. 86 Table 5.22. Summary of Key Higher-Priority Academic Skills Across the Technician Types ................. 87 Table 5.23. Summary of Key Higher-Priority Academic Skills Across the Technician Types ................. 88 Table 5.24. Summary of Key Higher�Priority Performance Tasks Across the Technician Types ............ 89 Table 5.25. Science Technicians--Priority Academic Skills..................................................................... 90 Table 5.26. Science Technicians--Priority Performance Tasks ................................................................ 91 Table 5.27. Drafting, Design, and Product Development Technicians--Priority Academic Skills........... 92 Table 5.28. Drafting, Design, and Product Development Technicians--Priority Performance Tasks ...... 93 Table 5.29. Manufacturing Software/Applications Technicians--Priority Academic Skills..................... 94 Table 5.30. Manufacturing Software/Applications Technicians--Priority Performance Tasks ................ 95 Table 5.31. Electrical/Electronic Engineering Technicians--Priority Academic Skills ............................ 96 Table 5.32. Electrical/Electronic Engineering Technicians--Priority Performance Tasks........................ 97 Table 5.33. Mechanical Engineering Technicians--Priority Academic Skills .......................................... 98 Table 5.34. Mechanical Engineering Technicians--Priority Performance Tasks...................................... 99 Table 5.35. Electro-Mechanical Technicians--Priority Academic Skills................................................ 100 Table 5.36. Electro-Mechanical Technicians--Priority Performance Tasks ........................................... 101 Table 5.37. Production Technicians--Priority Academic Skills.............................................................. 102 Table 5.38. Production Technicians--Priority Performance Tasks ......................................................... 103 Table 5.39. Facilities Management/Systems Technicians--Priority Academic Skills ............................ 104 Table 5.40. Facilities Management/Systems Technicians--Priority Performance Tasks ........................ 105 Table 6.1. Summary of Proposed Strategies and Actions ...................................................................... 112

List of Abbreviations

AAS ABET AFL-CIO AS ASU ATE, ATEC ATM/SONET CAD, CADD CAM CCITT CIP CNC CNEU CRM CTC EDC ERP EVIT FAA GED HTI ICT ISO IT JACMET LEED MANCEF MATEC MCCCD MEMS MRP NACFAM NASA NCME NCTT NIMS NMT NNIN NSF OEM OJT PLTW POTS ROHS SAME-TEC SCME Associate in Applied Sciences Accreditation Board for Engineering and Technology American Federation of Labor and Congress of Industrial Organizations Associate in Science Arizona State University Advanced Technology Education, Advanced Technology Education Center Asynchronous transfer mode/synchronous optical network Computer-aided design/drafting Computer-aided manufacturing Community Colleges for Innovative Technology Transfer Classification of Instructional Program Computer numerical control Center for Nanotechnology Education and Utilization Customer Relationship Management Convergence Technology Center Economic development council Enterprise resource planning East Valley Institute of Technology Federal Aviation Administration General Equivalency Diploma High Tech Institute information and communications technology International Organization for Standardization Information technology Joint Alliance of Companies Managing Education for Technology Leadership in Energy and Environmental Design Micro and Nanotechnology Commercialization Education Foundation Maricopa Advanced Technology Education Center Maricopa County Community College District Micro electro-mechanical systems Manufacturing resource planning National Coalition for Advanced Manufacturing National Aeronautics and Space Administration National Center for Manufacturing Education National Center for Telecommunications Technology National Institute for Metalworking Skills, Inc. Nanomanufacturing Technology National Nanotechnology Infrastructure Network National Science Foundation Original equipment manufacturer On-the-job training Project Lead the Way Plain old telephone service Removal of Hazardous Substances (European Union) Semiconductors, Automated Manufacturing, and Electronics--Training and Education Conference Southwest Center for Microsystems Education

SEMI SHPE SRP SWOT TVI

Semiconductor Equipment and Materials International Society of Hispanic Professional Engineers Salt River Project Strengths, weaknesses, opportunities, and threats Albuquerque Technical Vocational Institute

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Executive Summary

INTRODUCTION

This report, Competing with Talent: High-Technology Manufacturing's Future in Greater Phoenix, has been developed in the context of overarching global trends that are impacting the technology manufacturing workplace locally as well Study Sponsors and Supporters as throughout the United States. Greater Phoenix's high-technology The Maricopa County Community College District (MCCCD) entered manufacturers are increasingly dependent into a unique partnership with the Salt River Project (SRP) to undertake on the knowledge and skills of their this extensive study. workers to maintain their advantage. It is Joining MCCCD and SRP in supporting this study are the Arizona in this context that the Maricopa County Department of Commerce, Greater Phoenix Economic Council, Phoenix Community College District (MCCCD), Workforce Connection (City of Phoenix Workforce Investment Board), in collaboration with and with the support Maricopa Workforce Connections (Maricopa County Workforce of a range of organizations in the region, Investment Board), and the Arizona State University Ira A. Fulton School has undertaken this study. As part of its of Engineering. strategic planning efforts, the MCCCD system engaged Battelle's Technology Additionally, numerous industry groups and other organizations assisted Partnership Practice to develop a highwith this effort, including the Arizona Association of Industries, American technology manufacturing workforce Electronics Association (AeA)--Arizona Council, Arizona Aerospace and strategy focused on technical workers for Defense Industry Association, Arizona Manufacturing Network, Arizona whom MCCCD is a major education Technology Council, Arizona Department of Education - Career and provider and deliverer of programs and Technical Education, and the Flinn Foundation. services. This study and report are intended to determine and respond to the changing workforce needs of the Greater Phoenix area's hightech manufacturing base as it competes in the global marketplace. While focused on MCCCD, it also has implications for other education providers, for Arizona State University (ASU), and for state and local economic development agencies and, most importantly, will require the leadership and support of hightech manufacturers and their trade associations for implementation. The analysis contained in this study forecasts that the number of technicians within key industry high-tech manufacturing segments (i.e., advanced materials, aerospace and defense, electronics and instruments, information and telecom services, and semiconductors and computer hardware) will likely grow from nearly 14,600 to more than 18,000 over the next 2 years--an overall 24 percent growth rate. This job growth, combined with the number of planned replacement hires, will result in nearly 5,000 workers entering new working opportunities during the next 2 years. The Greater Phoenix region's high-tech manufacturers are at new crossroads as economic prospects improve, yet changing market dynamics and global competition require new thinking in terms of production capacities, operational capabilities, and the technologies that will become the heart of their future products. Key to the firms' strategic and operational planning, regarding such issues as investment, engineering, product development, manufacturing, and sourcing/supplier development,

will be whether the workforce capabilities and capacities exist in the Greater Phoenix region to be competitive. According to the interviewed firms, the regional workforce development and training infrastructure, both public and private, has been at times either responsive or inattentive. Consequently, the significant demand and requirement for new technicians over the next few years will be difficult to impossible to meet solely on the population growth of the region. While some firms may succeed by hiring experienced workers from other firms, the region's economic condition could suffer without an influx of new technicians into the pipeline. The strategies and actions described and detailed in this report provide guidance for firms, industries, and the public and private educational infrastructure to come together to address these needs and sustain these workforce opportunities and potential to meet high-tech manufacturers' projected demands in the short and long term.

A recent survey (the 2005 Skills Gap Report*) by the National Association of Manufacturers, the Manufacturing Institute's Center for Workforce Success, and Deloitte Consulting LLP found the following: � Today's skill shortages are extremely broad and deep, cutting across industry sectors and impacting more than 80 percent of the companies surveyed. � Skill shortages are having a widespread impact on manufacturers' abilities to achieve production levels, increase productivity, and meet customer demands. � High-performance workforce requirements have significantly increased as a result of the skills gap shortage and the challenge of competing in a global economy, according to nearly 75 percent of survey respondents. *2005 Skills Gap Report--A Survey of the

American Manufacturing Workforce, available at http://www.deloitte.com/dtt/cda/doc/content/us_mfg _Talent%2 0Man agement_120 50 5.pdf

INDUSTRY OVERVIEW: EMPLOYMENT STRUCTURE AND CONCENTRATION

The question is, "Why focus on high-technology manufacturing?" There are several answers: � � � � It provides much-needed economic base employment and economic diversity to the region's economy. Manufacturing wages are higher than total private sector wages on average and higher than the average wages in "service" jobs. High-tech manufacturing firms pay even higher wages--typically because of increased skill requirements. The Greater Phoenix region is specialized relative to the nation in employment in many of the key high-tech manufacturing areas--Maricopa County is three times as specialized in semiconductors and computer hardware and two times as specialized in aerospace and defense as the nation. Because of these specializations, the region needs and will require increasingly sophisticated technical workers for these high-tech manufacturing firms to compete in fierce global competition for market share, profits, and leadership.

Additionally, it is important for the Greater Phoenix region to link high-skilled manufacturing with highskilled services to mutually reinforce its knowledge economy. Important segments of high-tech "services" (e.g., information technology [IT] and telecommunications development, which often includes some firms that actually manufacture relevant devices) could complement the region's high-tech manufacturers and also pay very high wages--again, typically because of higher skill requirements. Recent newspaper headlines in Phoenix show both the strength and growth in high-tech manufacturing in the region, including Intel's $3 billion investment in additional facilities in Chandler and expansion of its technician workforce. But, other examples include ON semiconductor, which has decided to consolidate

offshore wafer fabrication into Phoenix; Boeing Mesa's 2005 receipt of the Shingo prize for excellence in world-class manufacturing; and decisions by a range of smaller aerospace, telecommunications, and engineering companies to locate in Greater Phoenix. Table E.1 provides detailed information regarding the importance of overall manufacturing, overall services, and key high-tech�relevant industry segments on the overall employment and wage structure for the state of Arizona and for Maricopa County. In every instance, these industry segments exceed overall average private sector wages, as well as overall average wages in service industries.

Table E.1. Importance of Manufacturing, Services, and "High-Tech" to Greater Phoenix Region

Industry Title Total Private Sector Manufacturing Computer and Electronic Products Electrical Equipment and Appliances Transportation Equipment Service-Providing Industries Software Publishers Telecommunications Professional and Technical Services 2004 Employment Arizona 1,980,818 176,718 44,240 2,109 31,343 1,575,009 3,525 18,436 109,539 Maricopa County 1,416,609 128,616 38,175 1,291 18,501 1,139,696 1,392 15,903 84,005 2004 Average Annual Wage Arizona $ 36,208 $ 52,723 $ 78,061 $ 40,634 $ 65,809 $ 34,596 $ 64,191 $ 51,313 $ 52,494 Maricopa County $ 38,728 $ 54,182 $ 80,187 $ 39,348 $ 61,165 $ 37,064 $ 71,134 $ 51,232 $ 54,325

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages

The approach for this study focused on five specific key segments of high-tech manufacturing, as shown in Table E.2.1 These five segments were chosen because they have historically employed large numbers of technician-level workers and have been key markets for the services and students of the Maricopa Community Colleges and other regional education/training institutions.

Table E.2. Regional Employment Structure for High-Tech Manufacturing

Key High-Tech Segments Advanced Materials Aerospace and Defense Electronics and Instruments Information and Telecom Services Semiconductors and Computer Hardware 2004 Maricopa County Segment Employment 5,700 14,649 12,792 31,502 26,552 2004 Maricopa County Employment Concentration* 0.39 2.11 1.05 0.91 3.00 2004 State of Arizona Employment Concentration* 0.44 2.73 0.93 0.84 2.48

*Employment concentration (also known as a location quotient) is a measure of relative employment share comparing a specific region with, in this instance, the United States. Values equal to 1.0 indicate that the concentration of an industry's employment is equal to that of the United States, with values above and below 1.0 indicating greater or lesser concentration, respectively. Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages and Battelle calculations

As conceived, the study was also going to examine the sustainable systems industry. The results of the project found that firms do not typically classify themselves as in the sustainable systems industry (only two firms considered themselves in the sustainable systems industry) and hence were not included in further analysis. Many firms do, however, practice sustainable systems approaches, are engaged in "green" or renewable resource technologies, or are involved in environmentally responsible manufacturing via international standards and requirements such as ISO 14001 and the European Union's new Removal of Hazardous Substances directive.

PROJECT FOCUS AND METHODOLOGY

This study has been organized around four principal tasks as shown in Figure E.1: � Internal Program Assessment--including both a programmatic inventory and a strengths, weaknesses, opportunities, and threats (SWOT) analysis of MCCCD's high-tech manufacturing efforts Benchmarking and Competitive Positioning Analysis Industry Needs Assessment--primary data collection Strategic Framework--including Strategies, Actions, and Implementation Plan Development.

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Figure E.1. Project Work Plan

Internal Internal Program Assessment

Programmatic Inventory and SWOT Analysis

Strategic Framework

Industry Needs Assessment

Methodology and Data Collection

Benchmarking and Competitive Positioning Analysis

� Analysis � Key Issues � Strategies � Actions � Priorities � Time Frame � Resources � First Year Work Plan � Relationships & Connectivity � Replicable Data Base

Communications to Regional Stakeholders

Four complementary efforts were undertaken to develop a detailed picture of current and emerging industry needs among high-tech manufacturing employers in Greater Phoenix, including an Internet survey, direct interviews with one or more individuals in more than 100 high-tech manufacturing firms, a detailed skills assessment instrument, and focus groups in the key industry segments. Data were collected by the following means: 1. An Internet-based survey, open to all the region's high-tech manufacturers, was used to obtain a better understanding of the quantities and types of technicians employed, as well as overall operational and technological trends affecting these firms and their workplaces. 2. Company interviews were conducted with a cross section of 107 firms from the above industries. For each participating firm, managers responsible for each of three different functions within the business--strategy, operations, and human resources--were interviewed. The Battelle project team conducted the company interviews from late May through September 2005. 3. Firms interviewed were also asked to complete a more detailed skills assessment questionnaire, which articulates the disciplinary knowledge and skill sets required for each of up to 10 types of technician positions. 4. Finally, selected firms and stakeholders were invited to participate in 2-hour focus groups, organized by industry sectors. Four groups were held in early November, during which time the firms validated findings from the other sources and gave further dimension to their workforce needs as well as potential action items to address those needs going forward.

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MARICOPA COMMUNITY COLLEGES' HIGH-TECH MANUFACTURING PROGRAMS: INVENTORY AND ISSUES

There are significant challenges and opportunities for the MCCCD. Given their collective size and breadth, the 10 MCCCD institutions come into contact with a significant part of Greater Phoenix's current and future workforce--Maricopa's 277,000 student enrollment is equivalent to nearly 15 percent of the region's current labor force of 1.9 million. Key findings from this inventory include the following: � MCCCD institutions have developed programs that respond to the profile of Greater Phoenix's hightech manufacturing base, including the manufacturing and assembly aspects of these industries, but also programs that support the broad needs of these firms (e.g., communications technologies, "clean rooms"). Many of these programs are certificate-based. o Over the 6-year period, 1999 to 2004, the Maricopa Community Colleges accounted for only 23 percent of high-tech manufacturing�related Associate's degrees in the Greater Phoenix region--rising to 28 percent of the Associate's degrees in 2004. The MCCCD system, including the Maricopa Skill Center, is virtually the only provider of certificates for high-tech manufacturing disciplines in Greater Phoenix, accounting for 99 percent of high-tech manufacturing�related certificates in the region in 1999 to 2004.

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Other educational institutions in the Greater Phoenix region are also responding to the needs of firms to increase the supply of technical talent. Figure E.2 shows trends in supply as well as the performance of the region's educational deliverers including MCCCD. Private, proprietary institutions have generally focused their programs and enrollments on traditional regional industry strengths and interest in IT, given the concentration of computer and IT firms, and the need of all industries for more "information" workers.

400 DeVry University - Arizona 350 High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District Number of Associate's Degrees Awarded 300

Figure E.2. High-Tech Manufacturing Associate's Degrees Awarded by Regional Institutions

250

200

150

100

0 1999 2000 2001 Year 2002 2003 2004

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MCCCD institutions account for a modest share of regional high-tech manufacturing Associate's degrees. Given the strong regional industry specializations in such industries as semiconductors, electronics, aerospace, and defense, both at the original equipment manufacturer and supplier levels, there does appear to be a need to increase partnerships with and respond to the needs of these industries for future workers. High-tech manufacturing represents an opportunity area that has not received sufficient attention and focus at MCCCD or other educational institutions in the Greater Phoenix region.

STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS OF MCCCD'S ACTIVITIES IN ADDRESSING HIGH-TECH MANUFACTURING WORKFORCE NEEDS

The SWOT analysis indicates the following major strengths and weaknesses of MCCCD's current approaches to meeting high-tech manufacturers' workforce needs: � � Individual college programs have been responsive to industry need, but do not appear to gain from system synergies or cross marketing at a regional level. The programs are accessible during the day and in the evening and are relatively affordable, enabling incumbent workers to pursue certificates and degrees with and without tuition reimbursement from their employers. The capacity and industry linkages of many programs are enhanced by the use of adjunct faculty from industry as well as industry advisory boards. However, there is currently no standing industry advisory board at the system level to achieve synergies or pursue interdisciplinary or multiinstitutional opportunities. MCCCD's relatively predictable funding base and affordable tuition make it more accessible to Greater Phoenix's growing and increasingly diverse new workforce. MCCCD's interrelationship with ASU in general and ASU Polytechnic in particular enhances ASU's ability to further develop its advanced engineering and research programs.

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MCCCD's challenges for the future include � Renewing and upgrading programs at a pace that responds to and sometimes anticipates industry requirements, without depending too heavily on any one firm or industry for long-term success and scale; and Exhibiting nimbleness and agility in program design and delivery required by increasing competition (within the educational marketplace) including both traditional classroom-based and distance learning.

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Ultimately, the success of MCCCD's response to these challenges will depend on its ability to walk the two fine lines of its customers' supply and demand. This will require being able to respond quickly to the technical and skill needs of Greater Phoenix's high-tech manufacturing firms that depend on talent to maintain their competitive edge and develop programs, pathways, certificates, and curricula leading to successful, high-skill, high-wage jobs for MCCCD's students. With targeted efforts, MCCCD institutions have developed programs that respond to the profile of Greater Phoenix's high-tech manufacturing base, such as for the semiconductor/advanced electronics industry. Moreover, while MCCCD institutions have successfully developed curricula around the manufacturing and assembly aspects of these industries, they have also developed curricula to support the

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broad needs of these firms, including key communications technologies and computer systems and networking, as well as the advanced facility management and operational support capabilities to operate "clean room" and specialized environmental functions. But, the MCCCD system is lagging in the output of qualified workers for the region's and the state's high-tech manufacturing industries--leaving market share to other institutions to capture. MCCCD has many opportunities and strengths on which to build.

BENCHMARKING AND COMPETITIVE POSITIONING ANALYSIS

Just as firms attempt to learn from the "best in class," academic institutions, regions, and states can learn from one another. A benchmark analysis of eight centers based at community colleges around the nation found several trends: � � Centers that have emerged as national networks of regional centers have evolved to organizations focused on curriculum development and distribution. Other centers are more regionally based and address a range of industry needs--from developing and delivering certificate and individual credit courses to producing Associate's degree holders in targeted disciplines. At both regional and national levels, linkages of universities with community colleges appear to be increasing. Centers involve both 4-year and graduate institutions in (1) defining and applying industry standards, (2) collaborating on curriculum development, and (3) articulating transfers across degree levels and programs. The community college is the nexus for higher and secondary education as well as industry and economic development to come together to address talent generation needs in a more coordinated and concerted fashion. Centers, particularly those initially focused on a single industry such as telecommunications or semiconductors, have tended to evolve and broaden their foci. In the case of the semiconductor industry that is prone to periods of growth and contraction, centers have included complementary microelectronics industries that represent more stable employment outlooks. When industries undergo fundamental changes, the higher education collaborative, starting with the community colleges, is in a position to work with industry to define new standards, required skills, and competencies. An example of this is reflected in the development of a new "convergent technician" for the telecommunications industry. The experiences of these centers in responding to the technological changes and demands of their constituents and industrial partners are a reflection of the larger high-tech manufacturing and telecommunications workplace. Communications connectivity, regardless of content and industry, is a cross-cutting need. Similarly, there is a need to produce graduates with the ability to work in an information-rich and connected environment. Given the increasing pace of change, centers are finding ways to provide accessible education--both in the classroom and online--to incumbent workers needing to upgrade their skills to sustain their ability in a current industry or to transition to another one. In the newer technology areas, such as nanotechnology, it is in the shared long-term interest of both industry and the different levels of higher education to reach into the K-12 system to develop courses and career awareness in order to develop and expand a talent pipeline. Some of the benchmark centers have developed mentoring activities to increase this pipeline, with efforts targeted to populations with historically lower participation in technology careers.

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Successful programs and centers also tend to be explicitly tied to regional strategies for technologybased growth. Supporting and maintaining the leadership and meaningful participation of industry and academic champions are critical to staying focused and responding to new opportunities and challenges over time.

THE GREATER PHOENIX REGION'S HIGH-TECH MANUFACTURING TECHNICIANLEVEL WORKFORCE: CURRENT NEEDS AND FUTURE REQUIREMENTS

Background

One of the principal tasks of this project is to solicit and collect detailed information from the Greater Phoenix region's high-tech manufacturing firms that can provide understanding and insight into the following major components: � � � The current situation, key issues, and challenges facing the region's high-tech manufacturers The current and future demand for technician-level employees The breadth of adoption and depth of usage of advanced production and operations capabilities and new advanced technologies The specific academic skills required of and technical tasks performed by these technicians.

Key Findings-- Strategic Competitiveness Positioning

Respondents in general are bullish in terms of their expectations of future sales. Systems development and engineering requirements are growing more complex--technicians need experiential knowledge of system performance, not just the individual components. Lean/Six-Sigma efforts are increasingly being directed at system improvement opportunities versus individual operations/machines. Competitive advantage of domestic manufacturing favors products with higher engineering content that are quick to market. Arizona has a lower cost structure than neighboring California and other parts of the United States and has other geographic advantages. High-tech manufacturing requires constant market monitoring and constant product development cycles to maintain competitiveness. Global competition drives high-tech manufacturing. Customer demand and expectations are increasing. Cost controls and reductions are not lessening. Finding and retaining key employees and talent/technical skills/functions are becoming critical challenges. Increasingly, high-tech manufacturing in Greater Phoenix is facing capacity constraints--machines and space. Insufficient engineering and technical talent and a

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This information is not only useful for understanding the current condition and future potential of the region's hightech firms but also for providing regional educators, such as the Maricopa Community Colleges, a mechanism to better determine whether their curricula and programs are meeting the needs of the region's high-tech manufacturing employers. In addition, this information provides guidance to educators and academic institutions regarding how best to enhance and improve the curricula to meet high-tech manufacturing firms' future needs.

dwindling pipeline of supply may constrain growth of highThis project undertook a somewhat unprecedented intech manufacturing in the Greater Phoenix region. depth analysis of industry needs, aspirations, and gaps in addressing its current and future talent base. The industry data collection process included three specific approaches including a detailed Internet survey, an intensive and comprehensive interview process, and a detailed skills assessment effort.

Demand

A detailed estimate and forecast based on industry responses show that the number of technicians within the five key industry segments will likely grow from nearly 14,600 to more than 18,000 over the next 2 years--an overall 24 percent growth rate. This job growth, of nearly 3,500 workers, combined with nearly 1,500 planned replacement hires, will result in nearly 5,000 workers entering new working opportunities during the next 2 years (Figure E.3).

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Figure E.3. Expanding Technician Workforce, by Key Industry Segment

Current Technician Workforce

845

3,386

2,366

3,022

4,953

14,571

Advanced Materials Aerospace/Defense Electronics/Instruments Information/Telecom Services Semiconductors/Computer Hardware

Future Technician Workforce

1,036

3,654

3,525

4,044

5,770

18,030

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Number of Technicians

Currently, the four largest technician types in terms of employment--production, electrical/electronic engineering, manufacturing software/applications, and electromechanical technicians--account for nearly eight out of every 10 (78 percent) of the technicians in the Key Findings-- five key segments. These four types will also remain the Operational Requirements largest in terms of future employment, accounting for a Technicians will need to have more of a full "systems similar share (78 percent) (Figure E.4). perspective" in the future. Within the overall 24 percent growth, three technician types--science; manufacturing software/application development; and drafting, design, and product development technicians--will see increases of more than 33 percent over the next 2 years. From the context of workforce development and training, a calculation of potential training demand indicates that more than 9,000 of these technicians (50 percent) are very likely to need at least some level, if not substantial amounts, of formal and informal training over the next 2 years.

Finding employees with required talent and technical skills is getting increasingly difficult. The need to find ways to finance and integrate new machinery is increasing. Firms are looking beyond labor costs to find other costreduction opportunities. Necessities include on-time delivery and supply chain management. Smaller firms often have difficulty staying abreast of new and changing standards, requirements, and technologies. High-tech manufacturing requires quality management and control. Firms see continuous system improvement and optimization as ongoing priorities. All workers need to collect, analyze, and use information. Availability of IT workers may become limiting.

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Figure E.4. Expanding Technician Workforce, by Technician Type

Production Technicians Electrical/Electronic Engineering Technicians Manufacturing Software/Application Technicians Electro-Mechanical Technicians Other Various Technician-level Employees Drafting, Design, and Product Development Technicians Facilities Management/Systems Technicians Science Technicians Mechanical Engineering Technicians Industrial Engineering Technicians

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Current Technician Workforce Future Technician Workforce

Number of Technicians

Education Delivery and Focus

The question of where and how these technicians will receive this training remains unanswered. Overall, 42 percent of the region's high-tech manufacturing firms have used community colleges for some level of formal training for their technician workforce. While this is an important aspect, especially with regards to retraining and skill enhancing, the fact that less than 20 percent of the interviewed firms recruit from any of the Maricopa Community Colleges' campuses signifies that there may be a significant disconnect within the academe-toindustry pipeline for new technicians.

Key Findings-- Technical Workforce

Limited English-speaking ability among production workers/operators is an important issue. Lack of training in manual machining and the associated job design skills is becoming an issue. "Systems" understanding and thinking are becoming more critical. Demand is increasing for more well-rounded skill sets. Mix of technician requirements in more high-tech manufacturing operations is changing. Finding and keeping talent/technical skills will continue to pose a challenge. Cross-training of employees is becoming more essential. All firms, regardless of size, expect and acknowledge wage competition to recruit and retain their workforce.

Technology Focus

High-tech manufacturers emphasize "soft skills" as Within the region's high-tech manufacturing segments, critical. firms' and technicians' new and expanding use of Screening for employability is adding costs for high-tech advanced production and operations capabilities and manufacturers. advanced technologies provides an understanding of the Not all high-tech manufacturers can afford the Greater Phoenix region's market rate entry-level pay scales. firm's "high-tech" dynamics. These results also provide a Competing with other sectors in a tight labor market is a surrogate "curriculum" demand function for use by the growing concern. region's educational infrastructure, including the Maricopa Community Colleges. Important elements, as shown in Table E.3, include the following:

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One-half or more of all the region's high-tech firms are engaged in supply chain management activities. Half or more of the firms outside the information and telecom services segment are engaged in lean manufacturing, continuous improvement (CI), or other performance/operations improvement activities.

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�

Industry segments are placing much significance both now and into the future on engineering, design, and product development--over two-thirds of the firms in the aerospace and defense, semiconductors and computer hardware, and electronics and instruments segments are involved in these areas. Key segment firms show relative diversity in technology use but a fairly low level of current and future technology adoption (most technologies are used, but by only one-third of the firms or less in each segment). Only six technologies reach current adoption rates of 50 percent or more in any single industry segment. Over the next 3 to 5 years, three additional technologies will reach the 50 percent adoption rate within a specific industry segment. Only one technology, sensors and control technologies, is used by a majority of firms in two industry segments--aerospace and defense, and electronics and instruments. While no technologies exceeding 50 percent adoption in the future reached this level through significant growth rates, four technologies (photovoltaic/fuel cells, renewable/green technologies, smart materials, and nanotechnologies) have current adoption rates that will increase by more than 20 percent over the next 3 to 5 years.

Semiconductors and Computer Hardware

Currently In 3�5 Years

�

� �

Table E.3. Breadth of Adoption Summary--Important Capabilities and Technologies by Key Segment

Key Segments Advanced Production and Operations Capabilities Advanced Machining Advanced Processing Supply Chain Management/Logistics Performance/Operations Improvement Eng., Design, & Product Development Advanced Technologies Composite Technologies Embedded Systems Technologies Microelectronics/MEMS Technologies Nanotechnologies Photovoltaic/Fuel Cell Technologies Optical/Photonics Technologies Renewable/Green Technologies Semiconductor/Related Technologies Sensors/Control Technologies Smart Material Technologies Wireless Systems Technologies 29% 14% 14% 14% 14% 14% 29% 14% 43% 29% 29% 29% 14% 29% 29% 14% 14% 43% 14% 43% 29% 29% 43% 26% 22% 13% 22% 30% 13% 35% 57% 26% 30% 52% 39% 39% 35% 39% 35% 13% 39% 61% 35% 35% 17% 17% 17% 8% 13% 25% 25% 21% 63% 4% 42% 17% 17% 25% 8% 17% 25% 25% 21% 63% 4% 46% 13% 50% 25% 13% 13% 38% 13% 25% 13% 13% 50% 25% 50% 25% 25% 38% 50% 38% 25% 25% 38% 63% 16% 32% 63% 47% 0% 32% 16% 84% 42% 21% 47% 16% 37% 68% 53% 5% 37% 16% 84% 42% 32% 47%

Advanced Materials

Currently In 3�5 Years

Aerospace and Defense

Currently In 3�5 Years

Electronics and Instruments

Currently In 3�5 Years

Information and Telecom Services

Currently In 3�5 Years

43% 29% 57% 100% 29%

43% 43% 57% 100% 29%

70% 43% 70% 87% 87%

70% 52% 78% 91% 96%

21% 25% 54% 54% 63%

25% 33% 54% 58% 71%

0% 13% 50% 38% 25%

21% 47% 53% 84% 74%

21% 42% 58% 84% 74%

Legend

At least 50% of the segments' firms currently use the advanced production and operations capability or technology

At least 50% of the segments' firms will use the advanced production and operations capability or technology over the next 3�5 years

Current to future increase of 20% or more firms

Skills and Performance

Responses to the skills assessment questionnaires provide very detailed information regarding the current and future academic skill and technical performance tasks required by the Greater Phoenix region's hightech manufacturers. While the needs of each employer are specific, and the nature of each technician job is unique, some overarching themes emerged from these data, including the following:

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�

High-tech manufacturing employers almost uniformly require what might be viewed as a basic or "core" set of academic skills from their technicians. Skills such as basic problem solving, reading, arithmetic, logical reasoning, the ability to work in teams, and overall learning skills are almost always required (Table E.4).

Table E.4. Summary of Key Higher-Priority Academic Skills Across the Technician Types

Internet Tools--E-mail, Web-Enabled Applications Business Tools--Word Processing/Spreadsheets/Databases General Engineering Understanding Business Applications--CAD/CAM, MRP/ERP Systems Reading General Materials, Instructions, Policies, Procedures Reading Technical and Business Documents Writing General Materials, Instructions, Policies, Procedures

Learning Skills, Capacity, and Capability

Logical Reasoning

Technician Types

Ability to Work in Teams

Problem Solving

Science Technicians Drafting, Design, and Product Development Technicians Manufacturing Software/Application Technicians Electrical/Electronic Engineering Technicians Mechanical Engineering Technicians Electromechanical Technicians Production Technicians Facilities Management/Systems Technicians

X X X X X X X X

X X X X X X X

X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X

Includes Skills Considered High Priority for Two or More Technician Types

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The ability to work well in teams is almost universally reported as a higher-priority requirement. It is clear that employers in Greater Phoenix also value workers with critical thinking and problem-solving skills and those who can communicate effectively and work together. The scope of knowledge/skills can vary greatly across the technician types. Technicians involved in drafting, design, and product development and those working in manufacturing software must have a broad set of knowledge and skills in order to meet their employers' expectations. Conversely, production technicians were assigned many fewer high-priority academic skills and no high-priority performance tasks. While technical knowledge and skill requirements do vary across the technician types, those assigned as high priority are expected to increase in importance. Local employers are prioritizing those key academic and performance areas for each technician type they employ, and it is clear that the critical items will only become more important in the future.

�

In addition to academic skills, employers were asked to prioritize the performance tasks of their specific technicians. As one might expect, the performance tasks across the many technician types vary considerably. Only six tasks were considered high priority for two or more technician types--four of the technician types are engaged in selecting equipment; three are engaged in systems troubleshooting; and two each are engaged in performing product design, selecting materials, engaging in quality control activities, or monitoring and adjusting systems. The information developed through this industry needs assessment is not only useful for understanding the current condition and future potential of the region's high-tech firms but also gives regional educators,

Critical Thinking

Arithmetic

such as the Maricopa Community Colleges, a mechanism to better determine whether their curricula and programs are meeting the needs of the region's high-tech manufacturing employers. In addition, this information provides guidance to educators and academic institutions regarding how best to enhance and improve the curriculum to meet high-tech manufacturing firms' future needs.

STRATEGIC PLAN

A vision for the Greater Phoenix region must be developed to ensure that the region has the talent pool essential to the growth and competitiveness of high-technology manufacturing today and tomorrow.

Vision

The vision for Maricopa Community Colleges and the Greater Phoenix region regarding high-tech manufacturing talent is as follows: Establish the Greater Phoenix region as a premier location for developing, maintaining, and upgrading the technician talent base needed for U.S.-based high-technology manufacturing to remain globally competitive in such markets as semiconductors, aerospace, defense, electronics, instruments, and related support industries by the year 2016.

Mission

To achieve this vision, the MCCCD serves as a nexus where the interests of K-12 and higher education come together to address systemic needs and opportunities with industry as a full partner. This is accomplished by the following: � � Mobilizing public and private leadership and increasing citizen knowledge and understanding of the key role and economic opportunities provided by high-tech manufacturing. Through an organized and ongoing campaign, communicating key messages to internal and external audiences to inform and educate them about the opportunities and regional performance on key metrics of success. Ongoing and proactive marketing, including active outreach and ongoing interaction with industry along the educational continuum, beginning with career awareness and support for science and math teaching at the elementary school level, experiential and problem-based learning at the middle and high school levels, and interactions and two-way exchanges of higher education teachers and industry professionals. Developing well-defined and visible "career ladders" and talent clusters that encourage engineering and technical talent to be developed and retained in the state both throughout the educational pipeline as well as within industry. Creating and implementing mechanisms, programs, and incentives that encourage continual investment in skills development and education that also lead to profitable sales, income, and wealth generation for manufacturers, the state, and its citizens. Ensuring that state and local governments invest and participate in mechanisms to support and facilitate lifelong learning to ensure that the workforce continues to have the critical skills for success.

�

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Tactics

In terms of tactics, the Greater Phoenix region will achieve this vision and mission by the following: � � � Collecting information on the needs of high-tech manufacturing through surveys and other means to ensure that private sector needs and requirements are being addressed. Converting such survey results into concrete degrees, certificate programs, technical assistance, and problem-solving support as needed by high-tech manufacturers. Collaborating among and between levels of education providers, from career education in high schools, to community colleges, to engineering and related programs in universities, to offer lifelong educational opportunities and careers for students and workers while working and living in the Greater Phoenix region. Consulting with high-tech manufacturing more heavily in the design and development stages of curriculum and skill determination. Encouraging industry to increase the level and scale of internships, co-op education, and involvement in public education, including science and math education. Communicating the importance of high-tech manufacturing to Arizona's economic future, including that it offers clean industries; good, well-paying jobs; and lifelong careers.

� � �

STRATEGIES AND ACTIONS

For high-technology manufacturing to continue to grow and remain competitive as the base of Greater Phoenix's knowledge economy, the various stakeholders--industry, higher education and the community colleges, the K-12 system, and the community--must simultaneously address a range of challenges and opportunities to build and strengthen the talent pipeline. Five interrelated strategies and 11 associated actions are proposed for high-tech manufacturers, MCCCD and other education providers, government, and the broader community to achieve the mission and vision put forth.

Strategy One--Strengthen and Build the Talent Pipeline. The competitiveness of Greater

Phoenix's high-technology manufacturing sector will be increasingly dependent on the region's talent base.

Strategy Two--Mount a Multifaceted Regional Marketing Program. It is critical that the

importance of high-tech manufacturing to the region's and state's future be better understood to encourage students, parents, and educators to see the career opportunities and economic future these industries offer.

Strategy Three--Develop and Continuously Improve Programs. By directly engaging industry on a more consistent and system-wide basis, and utilizing industry equipment, facilities, and personnel strategically, education and training programs can be strengthened and enrollments increased to meet current and projected demand. Strategy Four--Increase and Develop System Capacity to Deliver Programs and Services Consistent with Industry and Employee Needs. Flexible and alternative methods of delivering

educational programs that meet the needs of employers must be developed.

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Strategy Five--Partner with Industry and the Community to Chart Shared Goals and Evaluate Performance. Top leadership and commitment are key to building and sustaining the

activities presented in this plan. These five strategies, and the 11 proposed actions they encompass, are outlined in Table E.5. Implementation time for most of these strategies and actions is anticipated over a 1- to 5-year period. Immediate priorities should be undertaken as soon as possible, while short-term priorities should be undertaken in the first year. Mid-term priorities should be implemented in the 1- to 3-year time period, and long-term priorities targeted for realization over a 3- to 5-year time horizon.

Table E.5. Summary of Proposed Strategies and Actions Strategy Action Action One: Develop the region's high-tech manufacturing talent pipeline by increasing high-tech manufacturing technology career awareness and pathways Action Two: Establish more targeted outreach and mentoring programs with high-tech manufacturers to work with diverse student populations Action Three: Develop consistent branding, marketing, and communications program for high-tech manufacturing programs and communications program for Maricopa Community Colleges Strategy Two: Mount a Multifaceted Regional Marketing Program Action Four: Establish and support a regional outreach and "calls" program focused on the base of high-technology firms in the Greater Phoenix region Action Five: Create a High-Tech Manufacturing Workforce Forum offering informational briefings and workshops on manufacturing technology developments Action Six: Focus first on strengthening and aligning existing programs and curricula with industry needs. Develop new programs when existing program cannot be adapted to meet an emerging need Action Seven: Establish and resource a system-level office to manage and coordinate the delivery of curricula and customized programs for high-tech manufacturers across Greater Phoenix Action Eight: Develop mechanisms to address key opportunities such as incumbent worker education and training to address near-term shortages of employees for high-tech manufacturing Action Nine: Promote, support, and participate in industry training consortia Action Ten: Create a Greater Phoenix High-Tech Manufacturing Workforce Advisory Board Action Eleven: Establish a high-tech manufacturing indicator scorecard Time Frame Mid-Term

Strategy One: Strengthen and Build the Talent Pipeline

Immediate Immediate to Mid-Term

Short- and Mid-Term Mid-Term

Strategy Three: Develop and Continuously Improve Programs

Immediate

Short- and Mid-Term

Strategy Four: Increase and Develop System Capacity to Deliver Programs and Services Consistent with Industry and Employee Needs

Short- and Mid-Term

Strategy Five: Partner with Industry and the Community to Chart Shared Goals and Evaluate Performance

Short- and Long-Term Short-Term

Immediate

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IMPLEMENTATION PLAN

Critical Actions

For this overall set of strategies to have their fullest impact on high-tech manufacturing in the region, certain of the 11 actions must be considered the most critical. Battelle has identified five actions as the underlying foundation for maximizing benefits to firms, individuals, and the community colleges: � � � � � Develop consistent branding, marketing, and communications program for high-tech manufacturing programs and communications program for Maricopa Community Colleges Establish and support a regional outreach and "calls" program focused on the base of high-technology firms in the Greater Phoenix region Strengthen and align existing programs and curricula with industry needs, and develop new programs when existing program cannot be adapted to meet an emerging need Create a Greater Phoenix High-Tech Manufacturing Workforce Advisory Board Develop the region's high-tech manufacturing talent pipeline by increasing high-tech manufacturing technology career awareness and pathways.

Immediate Work Plan Priorities

Immediate work plan priorities are those steps that the private and public sectors in Maricopa County should undertake in the first 12 months of strategy implementation. The following actions should be undertaken in the first year of implementing this strategy: � � � � � � Establish the Greater Phoenix High-Tech Manufacturing Workforce Advisory Board Begin the planning for and updating of a high-tech manufacturing indicator scorecard Initiate branding and marketing program for high-tech manufacturing in the region and state and at MCCCD Establish and resource an MCCCD system-level office to manage and coordinate the delivery of curricula and customized programs for high-tech manufacturers Utilizing the results of this report, begin the process of strengthening and aligning existing programs and curricula with industry needs and identify new programs where needed Work with high-tech manufacturers and their trade associations to establish targeted outreach and mentoring programs to work with diverse student populations.

Organization and Structure

For the most part, existing organizations are proposed to take on new and different roles. Overseeing and serving as "steward" of this strategy is the Greater Phoenix High-Tech Manufacturing Workforce Advisory Board. In addition, to undertake the efforts in building the talent pipeline, a separate "clearinghouse" is proposed to handle the mentoring and job-shadowing types of support. Finally, formation of the High-Technology Manufacturing Workforce Forum will serve as a networking event and potential national signature, addressing issues of technology and talent in high-tech manufacturing and building a national signature for the region.

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Measures of Success and Accountability

The following represent key measures and performance goals, with actual numbers or results tracked or monitored on an ongoing basis through the Greater Phoenix High-Tech Manufacturing Workforce Advisory Board: 1. Graduates of Associate's degree programs and receivers of certificates in high-tech manufacturing areas 2. Internships, mentors, shadow arrangements, etc. 3. Science and math courses taken by middle and high school students 4. Calls and outreach efforts 5. Market penetration of high-tech manufacturing brand in and outside the region 6. Industry consortia formed 7. Additional courses taken and degrees and certificates received in high-tech manufacturing.

CONCLUSION

The Greater Phoenix region is blessed with a legacy of strong semiconductor, electronics, instruments, telecommunications, and aerospace and defense firms that offer good, well-paying jobs. These legacy firms and their thousands of suppliers in the region are leaders in high-technology manufacturing. Essential to the global competitiveness of these firms is their ability to attract, expand, and retain the talent pool essential to their operations, including their technician workforce. This study reached more than 140 high-tech manufacturers in the region. Through extrapolation of projected hiring needs of interviewed firms to the universe of firms, the Battelle team calculated the need for nearly 5,000 additional technicians over the next 2 years--approximately 25 percent of which are replacements for those leaving the workforce because of retirement/attrition. Because of the increasingly sophisticated nature of these manufacturers' products and processes, it is expected that the number of technicians hired by high-technology manufacturers will only increase in the future. Recent plant expansions announced by Intel, the resurgence of hiring in the semiconductor industry, and firms considering expanding or locating in the Greater Phoenix region are all evidence of a need to further increase the technological quotient of the technician workforce of the future. Maricopa Community Colleges already play an important role in accounting for 99 percent of the certificates granted in recent years in high-tech manufacturing-related areas. However, they account for many fewer of those receiving Associate's degrees; here proprietary private schools dominate. Even so, there are major additional opportunities to expand and build a broader technician workforce in the region. The suggestions made in this report identify ways to accomplish that, laid out in five strategies and 11 actions (see Table E.5).

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Section 1. Introduction

CONTEXT

This report, Competing with Talent: High-Technology Manufacturing's Future in Greater Phoenix, has been developed in the context of overarching global trends that are impacting the high-tech manufacturing workplace locally as well as throughout the United States. These trends include the following: 1. Declining U.S. share of world population and growth of science, engineering, and technical talent available globally 2. Increased pressure on energy, food, and natural resources with growing economies worldwide, underlining need to work smarter and toward sustainable manufacturing 3. Increasingly rapid development and deployment of new technologies, with accompanying shorter product life cycles, pointing toward U.S. role in manufacturing increasingly at the innovative "front end" 4. Advances in information, communication, and knowledge diffusion coupled with reduced transaction costs accelerated by the Internet and global connectivity, leading to increasing requirements for knowledge workers throughout the manufacturing organization

American Manufacturing Workforce, available at http://www.deloitte.com/dtt/cda/doc/content/us_mfg _Talent%2 0Man agement_120 50 5.pdf

5. Increasing integration of business functions worldwide, along with accompanying pressures for economies 6. The growing need to act globally, including interacting with diverse cultures, countries, and markets across political boundaries within and beyond multinational corporations. As they compete in the global marketplace, Greater Phoenix's high-technology manufacturers are very much subject to these trends. As businesses based in the United States, these firms are increasingly dependent on the knowledge and skills of their workers to maintain their advantage. It is in this context that the Maricopa County Community College District (MCCCD), in collaboration with and with the support of a range of organizations in the region, has undertaken this study. As part of its strategic planning efforts, the MCCCD system engaged Battelle's Technology Partnership Practice to develop a high-technology manufacturing strategy and ongoing capacity that enables MCCCD to determine and respond to the changing workforce needs of the Greater Phoenix area's high-tech manufacturing base as it competes in the global marketplace.

MCCCD entered into a unique partnership with the Salt River Project (SRP) to undertake this extensive study. Joining MCCCD and SRP in supporting this study are the Arizona Department of Commerce, Greater Phoenix Economic Council, Phoenix Workforce Connection (City of Phoenix Workforce Investment Board), Maricopa Workforce Connections (Maricopa County Workforce Investment Board), and the Arizona State University (ASU) Ira A. Fulton School of Engineering. Additionally, numerous industry groups and other organizations assisted with this effort, including the Arizona Association of Industries, American Electronics Association (AeA)--Arizona Council, Arizona Aerospace and Defense Industry Association, Arizona Manufacturing Network, Arizona Technology Council, Arizona Department of Education Career and Technical Education, and the Flinn Foundation.

INDUSTRY OVERVIEW: EMPLOYMENT STRUCTURE AND CONCENTRATION

Given the nature of the Greater Phoenix region and its employment base, the question may be asked, "Why focus on high-technology manufacturing?" Indeed, overall manufacturing accounts for only approximately 9 percent of the region's private sector employment.2 However, the importance of manufacturing to the region goes beyond the workforce share. The manufacturing sector � � Provides much-needed economic base employment and economic diversity to the region's economy; and Pays higher wages than total private sector wages on average and higher than the average wages in "service" jobs. Manufacturing firms within the high-tech arena pay even higher wages--typically because of increased skill requirements.

Additionally, it is important for the region to link high-skilled manufacturing with high-skilled services to mutually reinforce the knowledge economy of the Greater Phoenix region. Important segments of hightech "services" (e.g., information technology [IT] and telecom development) can potentially complement the region's high-tech manufacturers and also pay very high wages--again, typically because of higher skill requirements. Table 1.1 provides detailed information regarding the importance of overall manufacturing, overall services, and key high-tech�relevant industry segments on the overall employment and wage structure for the state of Arizona and for Maricopa County. In every instance, these industry segments exceed overall average private sector wages, as well as overall average wages in service industries. While the detailed segments included in Table 1.1 may provide a glimpse into the high-tech context of the region, there is no formal definition of advanced or high-tech manufacturing--it is often referred to something that "you'll know it when you see it."3 The approach for this study focused on five specific key

2 Given Pinal County's small employment base, most publicly available sources used for general industry overview numbers include only Maricopa County data. For total private sector employment, manufacturing employment, and services industry employment, Pinal County accounts for approximately 2 percent of the Phoenix metropolitan statistical area total. However, to the extent practicable, the data collection process did attempt to include Pinal County firms. 3 No industry classification scheme allows for the specific identification of high-tech industries or firms to enable an extremely targeted approach. Indeed, even within the very specific high-tech segments identified as the basis for this project, many of these firms may not pass even an informal definition of high-tech. This point is especially important in the context of this study as many firms in these industries may not consider themselves to be "high-tech."

Table 1.1. Importance of Manufacturing, Services, and "High-Tech" to Greater Phoenix Region

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages

segments, as shown in Table 1.2.4 These five segments were chosen because they have historically employed large numbers of technician-level workers, are either significantly concentrated in the region or are part of an interwoven regional supply chain, and have been key markets for the services and students of the Maricopa Community Colleges and other regional education/training institutions. However, they also are a strong target for this effort because they have, and have the potential for, even stronger interconnections from a technological perspective--perhaps also sharing and co-developing the region's current workforce and future labor pool. Additionally, as shown in Table 1.2, two key industry segments of the region--aerospace and defense, and semiconductors and computer hardware--are both more than twice as concentrated in the region as they are nationally.

Table 1.2. Regional Employment Structure for High-Tech Manufacturing

*Employment Concentration (also known as a location quotient) is a measure of relative employment share comparing a specific region with, in this instance the U.S. Values equal to 1.0 indicate that the concentration of an industry's employment is equal to that of the U.S., with values above and below 1.0 indicating greater or lesser concentration, respectively. Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages and Battelle calculations

As conceived, the study was also going to examine the sustainable systems industry. The results of the project found that firms do not typically classify themselves as in the sustainable systems industry (only two firms considered themselves in the sustainable systems industry) and hence were not included in further analysis. Many firms do, however, practice sustainable systems approaches, are engaged in "green" or renewable resource technologies, or are involved in environmentally responsible manufacturing via international standards and requirements such as International Organization for Standardization (ISO) 14001 and the European Union's new Removal of Hazardous Substances (ROHS) directive.

PROJECT FOCUS AND METHODOLOGY

This study has been organized around four principal tasks as shown in Figure 1.1: � Internal Program Assessment--including both a programmatic inventory and a strengths, weaknesses, opportunities, and threats (SWOT) analysis of MCCCD's high-tech manufacturing efforts Benchmarking and Competitive Positioning Analysis Industry Needs Assessment--primary data collection Strategic Framework--including Strategies, Actions, and Implementation Plan Development.

� � �

Figure 1.1. Project Work Plan

Internal Internal Program Assessment

Programmatic Inventory and SWOT Analysis

Strategic Framework

Industry Needs Assessment

Methodology and Data Collection

Benchmarking and Competitive Positioning Analysis

� Analysis � Key Issues � Strategies � Actions � Priorities � Time Frame � Resources � First Year Work Plan � Relationships & Connectivity � Replicable Data Base

Communications to Regional Stakeholders

To provide a basis for understanding MCCCD's offerings and activities, the Battelle team interviewed and reviewed information from directors and faculty involved in nearly 40 manufacturing-related programs across five of the 10 Maricopa Community Colleges as well as the Skills Centers and Maricopa Advanced Technology Education Center (MATEC). This inventory also covered both producer and feeder programs in community colleges, K-12, and universities, including the various engineering-related programs at both the main campus of ASU and ASU Polytechnic. Included in the quantitative review were qualitative sources of students, characteristics, and placements, as well as an overview of the curricula and competencies addressed. The programmatic awards data collected for this effort resulted in a more quantitative assessment presented in Section 2, "Maricopa Community Colleges' High-Tech Manufacturing Programs: Inventory and Issues," and a more qualitative assessment of the strengths, weaknesses, opportunities, and threats of the existing programs relative to industry's current and future needs are presented in the Section 3, "Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of MCCCD's Activities in Addressing High-Tech Manufacturing Workforce Needs." To better inform and consider the efforts of other leading community college nationally in hightechnology manufacturing areas, the Battelle team benchmarked MCCCD against eight centers that have been created across the nation to address technical workforce needs. The eight cases selected for comparability with the interests of this study included educational institutions' efforts focused on nextgeneration manufacturing. To select the most useful cases, Battelle worked with the stakeholder steering

committee to develop criteria for selection and a candidate list from which to select six benchmark examples. Because no one center captured all the issues and industries within the focus of this study, a range of centers with different technology foci was selected, with emphasis on including a sample of best practices from western states and in states with manufacturing bases similar to the Greater Phoenix region. This analysis identified success factors, elements, and best practices for next-generation manufacturing. It also helped to identify relevant national and international trends in markets, technologies, skill requirements, and other issues affecting the future talent pool for high-technology manufacturing. The outcome of this effort is presented in Section 4, "Benchmarking and Competitive Positioning Analysis." Four complementary efforts were undertaken to develop a detailed picture of current and emerging industry needs among high-tech manufacturing employers in the Greater Phoenix region, including validating the data through a set of industry and stakeholder focus groups. The information collected has been used to better inform MCCCD of its provision of technical and other talent for the high-technology manufacturing sector of the Greater Phoenix area. Information was collected from a sample of firms in each of the five industry groups: � � � � � Advanced materials Aerospace and defense Electronics and instruments Information and telecom services5 Semiconductors and computer hardware.

Data were collected by the following means: 1. An Internet-based survey, open to all the region's advanced and high-tech manufacturers, was used to obtain a better understanding of the quantities and types of technicians employed, as well as overall operational and technological trends affecting these firms and their workplaces. 2. Company interviews were conducted with a cross section of 107 firms from the above industries. For each participating firm, managers responsible for each of three different functions within the business--strategy, operations, and human resources--were interviewed. The Battelle project team conducted the company interviews from late May through September 2005. 3. Firms interviewed were also asked to complete a more detailed skills assessment questionnaire, which articulates the disciplinary knowledge and skill sets required for each of up to 10 types of technician positions. 4. Finally, selected firms and stakeholders were invited to participate in 2-hour focus groups, organized by industry sectors. Four groups were held in early November, during which time the firms validated findings from the other sources and gave further dimension to their workforce needs as well as potential action items to address those needs going forward.

Given the project's overarching focus on high-tech manufacturing and the fact that the information and telecom services segment is dominated by a large number of smaller software firms (many with less than 10 employees), the project approach to this segment was somewhat modified. To the extent practicable, information was primarily sought from the region's key firms in the information and telecom services segment with an additional special interest in those software firms providing manufacturing-related software or IT services (e.g., MRP systems, supply chain systems, etc.).

Company-level information has been aggregated to develop a better overall picture of current and emerging needs. The resulting analysis includes an assessment of the skills, employer training and education needs, and timing and priorities of demand. Additionally, it identifies key issues that need to be addressed for the retention and growth of high-tech manufacturing in the region. The product of this effort is an analysis presented in Section 5, "The Greater Phoenix Region's High-Tech Manufacturing Technician-Level Workforce: Current Needs and Future Requirements." The information collected through these various methods has been used to develop a strategic framework, which lays out a vision and mission for MCCCD in collaboration with industry, other education and economic development groups, government, and the community at large to undertake. Five major strategies are identified, each with specific action items, resources, and feasible time frames in order to achieve the vision put forward in the plan. This project will culminate in the development of a strategic framework for meeting Greater Phoenix's current and future high-tech workforce needs, with a particular focus on high-tech manufacturing careers, occupations, and demands. This strategic framework involves a set of interconnected strategies and actions, built on the progress to date that can drive a private and public partnership. The product of this project effort is presented in Section 6, "Strategic Plan."

Section 2. Maricopa Community Colleges' High-Tech Manufacturing Programs: Inventory and Issues

OVERVIEW

To obtain a better overall understanding of the Maricopa Community Colleges' current position and a better overview of how technical schools, community colleges, and others in the Greater Phoenix region are addressing high-technology manufacturers' demand and supply issues, Battelle identified and reviewed current programs and activities. This data analysis and assessment extended beyond MCCCD to other education institutions including DeVry University, ITT Technical Institute, High-Tech Institute (HTI), and ASU. It is important to note that this effort is not intended to be an evaluation of individual programs, but is designed to provide an overall base of information about the current set of manufacturing-related certificates and Associate's degree programs available in the region. Discussions with each institution included the following: � Overview Information, including program structure, recent enrollment, and completion activity, including further educational activities and transfers to ASU and other 4-year institutions, to the extent known. Curriculum and Program Content, including the strengths and limitations of the overall existing curricula, capabilities, capacities, equipment, or other infrastructure; accreditation; processes for modification; faculty profiles; and future plans. Student Profile, including age and other demographics, geographic and educational and skills background, evening versus day profiles, and industry and employment experience, as applicable. Industry Context and Demand, including leading companies engaged and/or hiring recent graduates, marketing and outreach to industry, and industry advisory boards and other methods used to get industry input on changing workplace needs.

�

� �

Battelle staff interviewed program directors and related faculty involved in high-tech manufacturing areas from the five (out of the 10) colleges in the Maricopa system identified by MCCCD as having significant manufacturing-related efforts. These programs included certificates and Associate's degrees in a variety of high-tech manufacturing and manufacturing-related technical/technician fields. These interviews were designed to gather information and to explore issues and opportunities related to the current and future manufacturing workplace in which MCCCD graduates are and will be engaged. As part of this analysis, ASU engineering administrators, department chairs, and associates at both the main campus in Tempe as well as at ASU Polytechnic (formerly known as "ASU East") in Mesa also were interviewed. Also reviewed was the National Science Foundation (NSF)-funded Automated Manufacturing Program (also known as Factory Wise), now in its pilot phase at the Maricopa Skill Center, a 600-hour course (potentially carrying 15 to 20 college credits transferable to any MCCCD college) targeted to disadvantaged workers seeking entry-level positions in automated manufacturing operations.

In addition, to obtain a more complete picture of the environment in which MCCCD programs are positioned, further information was collected through interviews and other methods from East Valley Institute of Technology (EVIT), as well as the DeVry University, ITT Technical Institute, and the HTI campuses in the region. Further "on-the-ground" insights also were developed through subsequent industry interviews where company managers have had experience with various manufacturing programs and recruitment. Program directors and related faculty were interviewed and information from institutional, departmental, and U.S. Department of Education Web sites was examined from the programs shown in Table 2.1.

Table 2.1. Institutions, Programs, and Departments

Chandler-Gilbert � Aircraft Construction & Maintenance Technology (2) � Automated Manufacturing Technology � Aviation Electronics Maintenance Technology � Composite Technology � Engineering & Computer Science GateWay � Electrical Technology/Technician � Facilities Systems Technology � Manufacturing Productivity Technology � Water Resources, Occupational Safety & Health Glendale � Electrical Engineering � Electronics Technology � Engineering Science Mesa � CAD, Microcircuit Mask Design, Mechanical Drafting Tech � Electro-Mechanical Automation Technology � Electronics, Electronic Engineering Technology � Manufacturing Automation, CNC � Manufacturing Engineering Technology South Mountain � Telecom Technology Maricopa Skill Center � Automated Manufacturing Program (NSF) (in pilot phase) Maricopa Advanced Technology Education Center (MATEC) CAD = computer-aided design/drafting CNC = computer numerical control DeVry University � Electronics & Computer Technology ITT Technical Institute � Computer & Electronics Engineering Technology � Computer Drafting & Design High-Tech Institute (HTI) � Electronics Technology � CAD/Drafting Technology East Valley Institute of Technology (EVIT) � Electronics Technology � Industrial and Commercial Technologies ASU Main (Tempe)--Fulton School of Engineering � Bioengineering � Chemical & Materials Engineering � Computer Science & Engineering � Electrical Engineering � Industrial Engineering � Mechanical & Aerospace Engineering � Academic Affairs � Center for Engineering Diversity & Retention ASU Polytechnic--College of Technology & Applied Sciences � Aeronautical Management Technology � Division of Computing Studies � Electronics & Computer Engineering Technology � Engineering � Technology Management � Mechanical/Manufacturing Engineering Technology

OVERVIEW OF MCCCD'S HIGH-TECH MANUFACTURING OFFERINGS

Maricopa Community College

Based on discussions with Maricopa Community Colleges' personnel, 27 programs were identified that offer "advanced" or "high-tech" manufacturing curricula (Table 2.2). These include programs that produce workers for the aerospace, defense, semiconductor, and electronics industries, and programs that teach general manufacturing skills. Because of the unique nature of some of Arizona's industries, a

number of programs also are included within the overall analysis that typically may be considered outside of the high-tech manufacturing realm. These include the following: 1. Computer systems and networking skills required by many of the semiconductor, advanced electronics, and telecommunications firms. 2. Advanced facility systems management and operational support capabilities to operate "clean room" manufacturing settings, including functions such as environmental and occupational safety, high-end HVAC systems, water, and wastewater treatment. 3. "Production"-type skills such as welding and machining required by the aerospace industry and its supply chain (including aircraft structural maintenance and rebuilding companies).

Table 2.2. Key Maricopa Community Colleges High-Tech Manufacturing Programs Program Name Chandler-Gilbert Community College

Aircraft Construction Technology Aircraft Maintenance Technology Automated Manufacturing Systems Aviation Electronics Maintenance Technology Avionics Technology Composite Technology Engineering & Computer Science X X X X 64-67 89-92 60.5-62.5 66-73

Certificate(s)

# Credits

Associate

# Credits

38.5-40.5

X 48 X 34 Primarily Articulation, Based On First 2 Years of Bachelor's Program X X X X X X 70 70 72 60-63 64-75

GateWay Community College

Aerospace Manufacturing Technology (on hold/not running) Electrical Technology Air Conditioning, Refrigeration & Facilities Technology Manufacturing Productivity Occupational, Safety and Health Technology Water, Wastewater & Industrial Treatment Technologies X X X(8) X X 43 19-22 15

Glendale Community College

Computer-Aided Design Technology (new program Fall '05) Electronics Manufacturing Technology Engineering Science X 68-69 X 67 Primarily Articulation, Based On First 2 Years of Bachelor's Program X(3) X X X X 43 36 33 33 27 X X X X X X X X X 66-67 68-74 78-84 65-69 68-71 71 68-71 63 64-68

Mesa Community College

Electro/Mechanical Drafting Electromechanical Automation Electronic Engineering Technology Electronics Technology Manufacturing Automation Manufacturing CNC Manufacturing Engineering Technology Manufacturing Management Microcircuit Mask Design

X X (2) X

36 17-21 15-20

South Mountain

Telecommunications Technology

Maricopa Skill Center

Automated Manufacturing Program (in pilot phase)

While this list is not exhaustive of all programs within MCCCD that provide training to the region's hightech manufacturers, it does provide a broad context upon which to base further study.

These programs were then classified into the appropriate Classification of Instructional Program Codes (CIP Codes) based upon a program-CIP Code mapping matrix provided by Maricopa Community Colleges.6 Additionally, other manufacturing-relevant technician CIP Codes were included in the analysis to both cover the broadest possible definition and to improve comparability to other regional institutions.

Maricopa Advanced Technology Education Center

Beyond the distinct certificate- and degree-granting programs within the MCCCD system, the District is also home to a unique, high-tech manufacturing�related educational asset--the MATEC. MATEC, launched in 1997, is one of 18 NSF-sponsored Advanced Technology Education (ATE) Centers. Each of these Centers is housed within a community college infrastructure to focus on technician-level training; is strongly connected, directed, and funded by industry champions; focuses on a specific technological domain of regional, if not national, importance; and is designed to be a clearinghouse of "best practices" on meeting the educational and training needs of their focus technology or industry.7 The focus of MATEC was developed around the educational and training needs of the semiconductor industry and is built upon significant relationships with the Semiconductor Industry Association, International SEMATECH, and individual industry members such as Intel, Motorola, AMD, Texas Instruments, National Semiconductor, and other industry leaders. MATEC's overarching purpose is to develop and provide the required curriculum and professional development for its educational partners to meet the needs of local semiconductor manufacturers. Currently, MATEC has more than 130 U.S. and international educational partners. As MATEC and the semiconductor industry have both matured, additional complementary efforts have been developed that broaden the core curriculum efforts to be more inclusive of automated manufacturing and electronics environments in general, including those that extend beyond the semiconductor industry. From the perspective of the Greater Phoenix region, while MATEC does not directly train the regional workforce, it does provide a unique resource to assist MCCCD and other regional institutions in meeting the needs of regional high-tech manufacturers. Discussions with various MCCCD faculty members indicate the value of the MATEC effort to the region, especially given the employment size of the region's large semiconductor facilities. However, some concern was expressed in that, by their nature, the MATEC efforts are geared toward large-scale semiconductor operations, often meaning that the curriculum was not 100 percent applicable to the needs of smaller, contract semiconductor operations or the broader integrated circuit/electronics industry in the region.

AWARD AND GRADUATION TRENDS

In the context of the Greater Phoenix workforce, the Maricopa Community Colleges are positioned to serve and advance the technology-talent pipeline through multiple avenues. They provide the following: � An affordable point of access for high school graduates not going directly to 4-year institutions, including further preparation for additional post-secondary education. In this arena, 2-year

Analysis of award data throughout this section is based upon the U.S. Department of Education's CIP Code classification scheme. The complete list of CIP Codes, and their mapping into Technician Educational Areas used in this analysis, is included in Appendix A. 7 In this context, Dr. Michael Lesiecki, Executive Director of MATEC, assisted the Battelle team in identifying other ATE centers around the country that could provide examples of "best practices" in serving firms within the key industry segments of this study. The results of this effort are contained in Section 4 "Benchmarking and Competitive Positioning Analysis."

engineering science degree activity, although not always culminating in an Associate in Applied Sciences (AAS) degree, is an important feeder into the ASU and other 4-year engineering institutions. � Retooling for career changers and advancers, including adults returning to the workforce or adding skills for advancement. In this area, certificates are more often sought in the marketplace than full degrees. Remedial education and workforce development, either through certificate and noncredit training through two skills centers or through individual courses, certificates, and eventually degrees.

�

While not a perfect indicator of educational supply, graduation data do provide one quantifiable and key indicator of "talent generation" for a manufacturing- and technology-based workplace that increasingly requires knowledge and competencies beyond the high school level. For this analysis, a dataset of regional institutions was developed using data from the U.S. Department of Education's National Center for Educational Statistics for each school year from 1999 to 2004 (the most recent 6-year period available). Data include information on institutions, program type (based on CIP Codes), award-level type (certificate or Associate's degree), and numbers of awardees.

Maricopa Community Colleges District

MCCCD conferred 4,105 high-tech manufacturing�related awards (both certificate and Associate's degrees) between 1999 and 2004. Of these awards, 1,905 are short-term certificates (less than 1 year), 1,250 are longer-term certificates (between 1 and 2 years), and 950 are Associate's degrees (Figure 2.1).

Figure 2.1. Distribution of Maricopa Community Colleges' High-Tech Manufacturing Certificates and Associate's Degrees, 1999�2004

1000

Associate's Degree

900 800 700 Number of Awards 600 500 400 300 200 100 0 1999 2000 2001 Year 2002 2003 2004

Certificate: At least 1 but less-than-2 academic years Certificate: Less-than-1 academic year

Figure 2.1 also shows that, during the economic downturn, overall programmatic awards increased; but, they fell off slightly in 2004--likely because of the overall improved economic prospects in the region-- and hence workers and students are more engaged in their existing jobs than in furthering their education. Figure 2.2 shows the distribution of total awards for 1999 to 2004 by each of the MCCCD institutions.

Figure 2.2. Distribution of Total Awards (1999�2004) by MCCCD Institution

1,200

1,000

Total Number of Awards, 1999-2004

Associate's Degree Certificate: At least 1 but less-than-2 academic years

800

Certificate: Less-than-1 academic year

600

400

200

ay sa Ph oe nix Ce nte r ala do da le ey le Sc ott sd a So uth t an dle r/G ilb er Ga teW Me Mo u Gl en Va ll Mo u nta in nta i n

Pa ra dis e

Sk ill

lla

ric op a

Es tre

MCCD Institution

This distribution shows that a significant share of the high-tech manufacturing�related awards is coming from the certificate programs of the Maricopa Skill Center (accounting for 27 percent of all awards and 35 percent of all MCCCD certificates). Additionally, it shows that Chandler-Gilbert and GateWay are also significant providers of certificates, accounting for 22 percent and 18 percent of all MCCCD certificates, respectively. Figure 2.2 also shows that three MCCCD institutions--Mesa, Glendale, and GateWay--are the most significant providers of high-tech manufacturing�related Associate's degrees, each accounting for more than 22 percent of the Associate's degrees and together accounting for more than 70 percent of the MCCCD high-tech manufacturing�related Associate's degrees.

Certificates and Degrees Awarded by Technician Educational Areas and Fields

To better understand MCCCD's connections to high-tech manufacturing and the role the individual institutions play in meeting regional demand requires further analysis. To provide structure to this analysis, the high-tech manufacturing�related CIP Codes were grouped into six technician educational areas--that roughly correspond to the technician areas developed and analyzed further in this study and group together the key technician training areas from which high-tech manufacturers would draw. It is important to note that most, if not all, of these technician educational areas provide certificates and Associate's degrees to non�high-tech manufacturers and other nonmanufacturing industries, in addition to the region's high-tech manufacturers. For example, welding training (within the production technician area) can be used within the aerospace supply chain or in the region's construction industry; similarly, computer systems networking/telecommunications can be used within businesses of all types, not just in the telecommunications industry. The six areas and the distribution of overall awards in each are shown in Figure 2.3.8

See Appendix A for program details for each of the six technician educational areas.

Figure 2.3. Distribution of Total MCCCD High-Tech Manufacturing�Related Awards (1999�2004), by Technician Educational Area

Installation, Maintenance, & Systems Technicians 8.1% Aircraft/Avionics Technicians 8.6% Networking/Telecom Technicians 37.7% Engineering Technicians 17.1% Supply Chain Technicians 0.2%

Production Technicians 28.2%

Two technician educational areas account for the majority of awards--networking/telecom technicians and production technicians. This is not surprising as these two areas are common or crosscut all types of manufacturing and, indeed, throughout many other industries as well. Engineering technicians, the technician educational area most directly aligned with high-tech manufacturing, account for slightly more than 17 percent of MCCCD's total high-tech manufacturing�related awards. Table 2.3 provides additional details regarding the distribution of certificates and degrees awarded within these technician educational areas from 1999 to 2004. It shows that, within the MCCCD system, engineering technician programs are primarily delivered via Associate's degrees, while the remaining programs are currently more aligned with short- or longer-term certificates.

Table 2.3. Distribution of Total Awards, 1999�2004, by Technician Educational Area

Technician Educational Area Networking/Telecom Technicians Engineering Technicians Installation/Maintenance/Systems Technicians Aircraft/Avionics Technicians Production Technicians Supply Chain Technicians Short -Term Certificates 72% 17% 47% 0% 43% 56% Longer-Term Certificates 5% 15% 22% 100% 55% 0% Associate's Degrees 22% 68% 31% 0% 2% 44%

Source: National Center for Educational Statistics, IPEDS Survey, School Years: 1999�2004, and Battelle calculations.

Figure 2.4 examines these same technician educational areas, but details their distribution by MCCCD institution. As shown in Figure 2.4, the Maricopa Skill Center is responsible for the vast majority of production technicians (e.g., welding, machining), which, as detailed in Table 2.3, is overwhelmingly geared toward certificate-based instruction. Additionally, Figure 2.4 shows that three MCCCD institutions--Mesa, GateWay, and Glendale--are responsible for the majority of engineering technician programming. This reiterates the results from Figure 2.2, showing these same three colleges as the key Associate's degree�awarding institutions within MCCCD.

Figure 2.4. Distribution of Total MCCCD High-Tech Manufacturing-Related Awards (1999�2004), by Technician Educational Area and MCCCD Institution

1,200 Supply Chain Technicians Installation/Maintenance/Systems Technicians Aircraft/Avionics Technicians Engineering Technicians Production Technicians Networking/Telecom Technicians

1,000 Total Number of Awards, 1999-2004

800

600

400

200

Me sa Pa ra dis eV all ey Gl en Ma da le ric op aS kil lC en ter Ga teW ay nix o ler /G ilb er t da le Sc ott s Mo un ta i n Mo un tai n Ph oe ala d Ri oS

Ch an d

tre lla

MCCD Institution

To provide a more complete understanding of the engineering technician educational area, Figure 2.5 details programs (defined by CIP Codes) included within the engineering technician area.

Figure 2.5. Program Detail of Engineering Technician Certificates and Associate's Degrees (1999�2004)

Other Engineering Technologies 1.6% Drafting/Design Engineering Technology 10.9%

Computer Engineering Technology 11.3%

Electrical/Electronic & Communications Engineering Technology 33.3%

Industrial/Manufacturing Engineering Technology 18.6% Electromechanical Engineering Technology 24.3%

MCCCD's Role in the Region

Overall, graduation levels for high-tech manufacturing�related Associate's degrees are relatively modest in the region, compared with the large enrollment of students throughout the Maricopa Community Colleges. Other educational institutions in the region, including DeVry University, HTI, and ITT

So u th

Technical Institute, also offer high-tech manufacturing Associate's degree programs. In fact, during 1999 to 2004, the Maricopa Community Colleges accounted for only 23 percent of the high-tech manufacturing�related Associate's degrees awarded in the Greater Phoenix region-- in 2004 MCCCD's share grew to 28 percent (Figure 2.6).

Figure 2.6. High-Tech Manufacturing Associate's Degrees Awarded by Regional Institutions

400 DeVry University - AZ 350 High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District Number of Associate's Degrees Awarded 300

250

200

150

100

0 1999 2000 2001 Year 2002 2003 2004

Figure 2.6 shows that over the 6-year period the changing dynamics of the region have been reflected in the total number of Associate's degrees awarded by the regional providers, as seen in the following: 1. Associate's degrees awarded by DeVry University have unmistakably declined. This is likely a combined result of the declining demand for its programs (which are concentrated in the electronics field) and of the institutional emphasis being placed on Bachelor's degrees. 2. HTI, focused primarily in the computer-enabled engineering and design arena, also demonstrated a marked decline in total Associate's degrees awarded during 1999 to 2002. However, recent growth is due to resurgence in computer engineering degrees and a newer design engineering program. This growth has made HTI the largest provider of high-tech manufacturing�related Associate's degrees in the region. 3. The ITT Technical Institute also has seen a recent (2003 and 2004) increase because of increased demand for its Associate's degree programs in computer-aided design (CAD). 4. Within the MCCCD system, the fairly consistent growth has been driven by a steady increase in the number of Associate's degrees in systems networking and telecommunications. However, as noted above, while Associate's degrees are a critical component of the educational portfolio for high-tech manufacturing, certificate programs also play an integral role--especially with regard to retraining and skill-enhancing efforts. Figure 2.7 shows overall awards by the four regional provider systems. The overall significance of the MCCCD system in meeting the educational needs of the region's manufacturing base and technician-level workforce is quite apparent. The Maricopa Community Colleges account for 4,105 total awards, 56 percent of all such awards in the region--more than the other three provider systems combined. From a certificate basis, the impact of MCCCD is even more

staggering--the MCCCD institutions delivered 99 percent of all certificates awarded in these fields in the region. As stated by a number of individuals, the MCCCD system is the primary provider from which to "get a certificate" to upgrade one's skills.

Figure 2.7. Total Awards, by Provider, 1999�2004

4,500 Total Number of Certificates and Associate's Degrees, 1999-2004 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 DeVry University - AZ High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District

Associate's Degree Certificate: At least 1 but less-than-2 academic years Certificate: Less-than-1 academic year

Institutional Providers

Figure 2.8 shows a potential concern regarding Maricopa Community Colleges' high-tech emphasis. As also noted above, the engineering technician educational area is the most directly connected with "hightech" and has the strongest connection to Associate's degrees. In this specific area, MCCCD lags in total awards behind both the HTI and DeVry University.

Figure 2.8. Total Awards, by Technician Educational Area and Provider, 1999�2004

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 DeVry University - AZ High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District Supply Chain Technicians Installation/Maintenance/Systems Technicians Aircraft/Avionics Technicians Engineering Technicians Production Technicians Networking/Telecom Technicians

Number of Certificates and Associate's Degrees, 1999-2004

Regional Institution

To put this issue into perspective--high-tech manufacturing�related educational awards accounted for 4.1 percent of all certificates and Associate's degrees from MCCCD and 4.0 percent of all MCCCD Associate's degrees in 2004. Nationally, these same 2004 shares related to high-tech manufacturing were 6.3 percent of certificates and Associate's degrees and 5.0 percent of all Associate's degrees. This amounts to a relative concentration metric of high-tech manufacturing awards in the MCCCD system of 0.65 for all certificates and Associate's degrees, increasing to 0.79 for Associate's degrees alone.9 However, including the other regional providers, these concentration metrics increase to 1.10 for hightech manufacturing�related certificates and Associate's degrees and up to 2.36 for Associate's degrees alone. What makes these numbers significant and extremely important is the size and high concentration of high-tech manufacturing in the Greater Phoenix region. As shown previously in Table 1.2, both aerospace and defense (concentration metric = 2.11) and semiconductors and computer hardware (concentration metric = 3.00) are significantly more concentrated in the region than they are nationally. Ultimately, this demonstrates that the MCCCD system is lagging in the output of qualified workers for the region's and the state's high-tech manufacturing industries--leaving market share, especially within Associate's degree�focused programs, to other regional institutions to capture.

OTHER TECHNICAL SCHOOLS AND INSTITUTIONS' INITIATIVES IN HIGH-TECH MANUFACTURING

The following profiles further characterize these other educational institutions in Greater Phoenix that provide programs related to high-tech manufacturing and technology for undergraduate credit, including at the Associate's degree level. Additionally, the EVIT is profiled.

DeVry University--Arizona

DeVry University is a national proprietary undergraduate and graduate institution with regional facilities in Phoenix, Mesa, and Scottsdale. Enrollment in the Phoenix metropolitan area is primarily undergraduate, representing more than 85 percent of a total matriculated enrollment of about 1,900. DeVry's national name brand and profile also provide an advantage in dealing on a consistent basis with national or international firms with multiple locations across the United States. As reflected in the industry interviews, DeVry has established a relatively high profile in Phoenix as a result of a proactive, coordinated institutional outreach effort to industry that creates opportunities for developing partnerships with key employers. At the undergraduate level, DeVry is known for its electrical/electronics engineering technology programs and a host of more standard IT-focused computer technology programs. New biomedical engineering and bioinformatics programs have been added in the past 2 years. Full-time tuition is $12,000 (Fall 2005).

ITT Technical Institute--Phoenix Metro

Like DeVry, ITT Technical Institute is a national proprietary school with a focus on technology career education. Its Phoenix campus is located in Tempe. Manufacturing-related Associate's degrees are offered in computer network systems, software applications and programming, computer and electronics engineering technology, and CADD. Tuition is $268 to $360 per credit hour (as of Fall 2004) or $4,000 to $5,000 for a full-course load, depending on the program.

If the MCCCD system and U.S. shares were equal, the concentration metric would be 1.00.

High-Tech Institute--Phoenix

Headquartered in Phoenix, HTI is a proprietary institution. The Institute operates 17 schools in 12 states and offers Associate's and Bachelor's Degrees and certificates. HTI of Phoenix was formed in June 1982 as the successor to the Electronic Institute of Arizona, which itself was founded in 1965. In addition to programs in allied health fields and criminal justice, HTI is a significant provider in computer-related fields, including CADD, computer networking and security, electronics design, and graphics/animation. Degrees and diplomas also are offered in Information Technology and Allied Health. As do the other proprietary technical institutions, HTI emphasizes "hands-on learning" and faster entry into employment. Tuition and fees range from $9,000 to $13,000 per year, depending on the program.

East Valley Institute of Technology

More of a collaborator and feeder for MCCCD, EVIT is Arizona's first Joint Technical Education District--one of 10 in the state and the only such district in the Phoenix area. Records show that 64 percent of EVIT's students proceed to higher education upon graduation. EVIT provides "hands-on" high school career and technical education and more limited adult programs in 35 program areas at a 70+-acre campus in the City of Mesa. Industry interviews have indicated that EVIT has a fairly high and positive profile among manufacturers, particularly in the precision machining area. Students are dually enrolled with their host districts and spend half-days at EVIT on applied learning curricula and half-days at their home schools. Students competitively apply for admission to EVIT, designating their program of interest. While more than 20 of the programs have waiting lists, these waiting lists are generally not found in manufacturing�related concentrations. Students come from 10 host districts, the largest of which-- Mesa--accounts for 1,500 of the approximately 3,000 students currently enrolled. While EVIT has experienced significant overall growth in the last 5 years, increasing enrollment from 900 to 3,000, manufacturing-related programs generally have not been growing. Publicly funded with a voter-approved property tax on a valuation base of $20 billion, EVIT has no debt. Through articulation agreements with Mesa and other institutions, students can complete and transfer coursework equivalent to 15 college credits prior to graduation. Proximity to MCCCD campuses, particularly Mesa, as well as some sharing of faculty in the manufacturing-related programs with MCCCD, positions EVIT as a significant feeder to MCCCD programs and a vehicle for industry to promote increased career awareness at the high school level on a targeted basis. Manufacturing�related programs, generally certified to applicable national standards, include aviation maintenance, electronics and robotics technologies, precision manufacturing (National Institute for Metalworking Skills, Inc.{NIMS] certified), technical drawing and CADD, as well as energy technologies, including fuel cells (as part of the automotive technologies program division). A number of courses within these programs, especially in electronics and machining, are taught by faculty shared with MCCCD. EVIT programs have active industrial advisory boards that meet as frequently as monthly, and industry partnerships have led to such established courses as an industrial cooperative course for seniors with Honeywell that includes a summer training component.

CONCLUSION

The preceding inventory reflects significant challenges and opportunities for the set of institutions that comprise the MCCCD. Given their collective size and breadth, the 10 MCCCD institutions come into contact with a significant part of Greater Phoenix's current and future workforce--Maricopa's 277,000 student enrollment is equivalent to nearly 15 percent of the region's current labor force of 1.9 million. Nevertheless, when viewed in proportion to overall enrollments, manufacturing industry demands, and competing, more focused proprietary institutions, MCCCD institutions account for a modest share of regional high-tech manufacturing Associate's degrees. Over the 6-year period of 1999 to 2004, the Maricopa Community Colleges accounted for only 23 percent of high-tech manufacturing�related Associate's degrees in the Greater Phoenix region--rising to 28 percent of the Associate's degrees in 2004. In contrast, MCCCD accounts for 99 percent of high-tech manufacturing�related certificate programs, whose enrollments have steadily increased over the past few years, demonstrating increased student interest and possible industry interest as well. Private, proprietary institutions in the region have generally focused their programs and enrollments on traditional regional industry strengths and interest in IT, given the concentration of computer and IT firms, and the need of all industries for more "information" workers. Given the strong regional industry specializations in such industries as semiconductors, electronics, aerospace, and defense, both at the OEM and supplier levels, there does appear to be a need to increase partnerships with and respond to the needs of these industries for future workers. High-tech manufacturing represents an opportunity area that has not received sufficient attention and focus at MCCCD or other educational institutions in the Greater Phoenix region. To obtain a better idea of these industry demands, the following sections of this report include a SWOT analysis of MCCCD's current high-tech manufacturing efforts, as well as the results of in-depth industry interviews to determine their needs and priorities.

Section 3. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of MCCCD's Activities in Addressing High-Tech Manufacturing Workforce Needs

In the course of its strategic planning, Maricopa Community Colleges need to assess, as would a business, their relative position in the marketplaces they serve. Strengths and weaknesses are those current factors that are within the internal control of the Colleges. Externally, both opportunities and threats are factors that impact the current and future success of the Colleges. While not directly controlled by the organization, these factors impact MCCCD's operating environment. A well-conceived strategy develops actions that seek to leverage the strengths while minimizing the weaknesses of the MCCCD institutions. At the same time, the strategy should also respond and take advantage of significant opportunities, while addressing threats. The following analysis is written from the perspective of MCCCD and in later sections of this report will be supplemented by the perspective of industry as obtained through extensive interviews and survey analysis. This section is drawn from interviews with academic administrators, department chairs, and faculty coordinators at five MCCCD schools with manufacturing�related programs and the Maricopa Skill Center operated by MCCCD, as well as discussions with department leaders at Arizona State University (both the Main and Polytechnic campuses). This information was supplemented with a review of available information on various Web sites and reports. It should be acknowledged that some statements made by interviewees may represent perceptions. To the extent possible, Battelle has eliminated statements that are not factual. However, some perceptions that affect the way groups, institutions, and organizations approach issues need to be acknowledged in this analysis.

STRENGTHS

Strengths are those factors that are internal and are advantageous to the MCCCD institutions. The strengths discussed below are drawn from the insights and experiences of the programs directors and were generally consistent with the perceptions of external academic stakeholders. � The Maricopa Community Colleges have responded to current and emerging trends at the individual college level. The diversity of the programs of the MCCCD reflects the response of individual colleges to the prior and current needs of area manufacturing firms and industries. In several cases, an individual faculty member or academic unit with an idea and demonstrated demand for a new program has been successful at establishing and building that program. There is a greater reliance on adjunct faculty for many of the manufacturing programs--this can be an advantage for connecting the curriculum with the needs of industry. In a number of programs, the significant majority of faculty was part-time and adjunct. While this can present management and consistency issues different from those related to full-time faculty, it can also be viewed as a strength, since these adjunct faculty are generally working in the target industry and can more readily provide their students real-world examples, current and best practices, and linka

Description

Rating
TITLE	Competing with talent: high-technology manufacturing's future in greater Phoenix
CREATOR	Battelle Memorial Institute. Technology Partnership Practice.
SUBJECT	High technology industries--Arizona;
Browse Topic	Science and technology Business and industry
DESCRIPTION	160 pages (PDF version). File size: 1625.745 KB. "Final Report." "December 2005." Prepared for Maricopa County Community College District; and the Salt River Project.
Language	English;
Contributor	Maricopa County Community College District; Salt River Project;
Publisher	Battelle Memorial Institute.
TYPE	Text
Material Collection	Special District Documents ATIC Archive
RIGHTS MANAGEMENT	Copyright to this resource is held by the creating agency and is provided here for educational purposes only. It may not be downloaded, reproduced or distributed in any format without written permission of the creating agency. Any attempt to circumvent the access controls placed on this file is a violation of United States and international copyright laws, and is subject to criminal prosecution.
DATE ORIGINAL	2005-12
Time Period	2000s (2000-2009)
ORIGINAL FORMAT	Born Digital
Location	New
DIGITAL IDENTIFIER	MCCCDHighTech2006.pdf
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Full Text	F I NA L REPORT COMPETING WITH TALENT: HIGH-TECHNOLOGY MANUFACTURING'S FUTURE IN GREATER PHOENIX Prepared For: Maricopa County Community College District and the Salt River Project Prepared by: Battelle's Technology Partnership Practice December 2005 � 2005 Battelle Memorial Institute Battelle Memorial Institute (Battelle) does not endorse or recommend particular companies, products, services, or technologies, nor does it endorse or recommend financial investments and/or the purchase or sale of securities. Battelle makes no warranty or guarantee, express or implied, including without limitation, warranties of fitness for a particular purpose or merchantability, for any report, service, data, or other information provided herein. Copyright 2005 Battelle Memorial Institute. Use, duplication, or distribution of this document or any part thereof is prohibited without the written permission of Battelle Memorial Institute. Unauthorized use may violate the copyright laws and result in civil and/or criminal penalties. Final Report Competing with Talent: High-Technology Manufacturing's Future in Greater Phoenix Prepared For: Maricopa Community Colleges and the Salt River Project Prepared By: Battelle's Technology Partnership Practice December 2005 Table of Contents Page List of Abbreviations .................................................................................................................................................. vi Executive Summary....................................................................................................................................................ix Section 1. Introduction ................................................................................................................................................ 1 Context ..................................................................................................................................................... 1 Industry Overview: Employment Structure and Concentration ............................................................... 2 Project Focus and Methodology ............................................................................................................... 4 Section 2. Maricopa Community Colleges' High-Tech Manufacturing Programs: Inventory and Issues .......... 7 Overview .................................................................................................................................................. 7 Overview of MCCCD's High-Tech Manufacturing Offerings................................................................. 8 Award and Graduation Trends ............................................................................................................... 10 Other Technical Schools and Institutions' Initiatives in High-Tech Manufacturing.............................. 17 Conclusion .............................................................................................................................................. 19 Section 3. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of MCCCD's Activities in Addressing High-Tech Manufacturing Workforce Needs ..................................................................................... 21 Strengths ................................................................................................................................................. 21 Weaknesses............................................................................................................................................. 23 Opportunities .......................................................................................................................................... 25 Threats .................................................................................................................................................... 26 Conclusion .............................................................................................................................................. 28 Section 4. Benchmarking and Competitive Positioning Analysis .......................................................................... 31 Overview ................................................................................................................................................ 31 The Benchmark Set ................................................................................................................................ 32 Conclusion .............................................................................................................................................. 52 Section 5. The Greater Phoenix Region's High-Tech Manufacturing Technician-Level Workforce: Current Needs and Future Requirements ............................................................................................................... 55 Summary................................................................................................................................................. 55 Introduction ............................................................................................................................................ 56 Industry Perspectives, Issues, and Opportunities ................................................................................... 59 Demand Analysis for Talent: Current Needs and Future Requirements ................................................ 72 Technical Dimensions: Current Needs and Future Requirements.......................................................... 81 Skills Assessment: Current Requirements and Future Needs................................................................. 87 Summary............................................................................................................................................... 105 Section 6. Strategic Plan..........................................................................................................................................109 Vision and Mission............................................................................................................................... 109 Strategies and Actions .......................................................................................................................... 110 Implementation Plan............................................................................................................................. 128 Conclusion ............................................................................................................................................ 130 Appendix A. CIP Codes Used In Analysis .............................................................................................................A-1 Appendix B. Selected References ........................................................................................................................... B-1 iii List of Figures Page Figure 1.1. Project Work Plan ..................................................................................................................... 4 Figure 2.1. Distribution of Maricopa Community Colleges' High-Tech Manufacturing Certificates and Associate's Degrees, 1999�2004...................................................................................... 11 Figure 2.2. Distribution of Total Awards (1999�2004) by MCCCD Institution ....................................... 12 Figure 2.3. Distribution of Total MCCCD High-Tech Manufacturing�Related Awards (1999�2004), by Technician Educational Area ............................................................................................. 13 Figure 2.4. Distribution of Total MCCCD High-Tech Manufacturing-Related Awards (1999�2004), by Technician Educational Area and MCCCD Institution...................................................... 14 Figure 2.5. Program Detail of Engineering Technician Certificates and Associate's Degrees (1999�2004) ............................................................................................................................ 14 Figure 2.6. High-Tech Manufacturing Associate's Degrees Awarded by Regional Institutions............... 15 Figure 2.7. Total Awards, by Provider, 1999�2004 .................................................................................. 16 Figure 2.8. Total Awards, by Technician Educational Area and Provider, 1999�2004 ............................ 16 Figure 5.1. Expanding Technician Workforce, by Technician Type......................................................... 73 Figure 5.2. Expanding Technician Workforce, by Key Industry Segment................................................ 75 Figure 6.1. Enhancing the Talent Pipeline for Technical and Engineering Workers .............................. 114 List of Tables Table 1.1. Importance of Manufacturing, Services, and "High-Tech" to Greater Phoenix Region ........... 3 Table 1.2. Regional Employment Structure for High-Tech Manufacturing............................................... 3 Table 2.1. Institutions, Programs, and Departments................................................................................... 8 Table 2.2. Key Maricopa Community Colleges High-Tech Manufacturing Programs.............................. 9 Table 2.3. Distribution of Total Awards, 1999�2004, by Technician Educational Area............................ 13 Table 3.1. Tuition and Fees--Full-Time Undergraduate at Associate's Degree-Granting Institutions............................................................................................................................... 23 Table 4.1. Benchmark Center Organizations and Focus............................................................................. 32 Table 4.2. Benchmark Center Programmatic Issues and Lessons Learned ................................................ 53 Table 5.1. Table 5.2. Table 5.3. Table 5.4. Table 5.5. Table 5.6. Table 5.7. Table 5.8. Table 5.9. Data Collection Results ........................................................................................................... 58 Use of Institutional Training Providers for Upgrading Existing Workforce........................... 68 Formal Internal Training Efforts ............................................................................................. 69 Training Plans and Funds ........................................................................................................ 69 Recruitment from Local Institutions ....................................................................................... 70 Percentages of Firms that Have Worked With MCCCD Colleges.......................................... 71 Working with Maricopa Community Colleges ....................................................................... 71 Career Awareness and Student Involvement........................................................................... 71 Estimated Current and Future Demand for Technicians--Totals by Key Segments .............. 72 iv Table 5.10. Technician Minimum Educational Requirements and Training Demand-- Totals by Key Segments.......................................................................................................... 74 Table 5.11. Advanced Materials--Estimated Current/Future Technicians and Training Demand............ 76 Table 5.12. Aerospace and Defense--Estimated Current/Future Technicians and Training Demand ...... 77 Table 5.13. Electronics and Instruments--Estimated Current/Future Technicians and Training Demand ................................................................................................................................... 78 Table 5.14. Information and Telecom Services--Estimated Current/Future Technicians and Training Demand ................................................................................................................................... 79 Table 5.15. Semiconductor and Computer Hardware--Estimated Current/Future Technicians and Training Demand..................................................................................................................... 80 Table 5.16. Breadth of Adoption--Current and Future Advanced Production and Operations Capabilities, Firms by Key Segment ....................................................................................... 81 Table 5.17. Breadth of Adoption--Current and Future Advanced Production and Operations Capabilities, Technicians by Key Segment ............................................................................. 82 Table 5.18. Breadth of Adoption--Current and Future Advanced Technologies, Firms by Key Segment ...................................................................................................................... 83 Table 5.19. Breadth of Adoption--Current and Future Advanced Technologies, Technicians by Key Segment ...................................................................................................................... 84 Table 5.20. Depth of Usage: Current and Future Advanced Production and Operations Capability ......... 85 Table 5.21. Depth of Usage--Current and Future Advanced Technologies.............................................. 86 Table 5.22. Summary of Key Higher-Priority Academic Skills Across the Technician Types ................. 87 Table 5.23. Summary of Key Higher-Priority Academic Skills Across the Technician Types ................. 88 Table 5.24. Summary of Key Higher�Priority Performance Tasks Across the Technician Types ............ 89 Table 5.25. Science Technicians--Priority Academic Skills..................................................................... 90 Table 5.26. Science Technicians--Priority Performance Tasks ................................................................ 91 Table 5.27. Drafting, Design, and Product Development Technicians--Priority Academic Skills........... 92 Table 5.28. Drafting, Design, and Product Development Technicians--Priority Performance Tasks ...... 93 Table 5.29. Manufacturing Software/Applications Technicians--Priority Academic Skills..................... 94 Table 5.30. Manufacturing Software/Applications Technicians--Priority Performance Tasks ................ 95 Table 5.31. Electrical/Electronic Engineering Technicians--Priority Academic Skills ............................ 96 Table 5.32. Electrical/Electronic Engineering Technicians--Priority Performance Tasks........................ 97 Table 5.33. Mechanical Engineering Technicians--Priority Academic Skills .......................................... 98 Table 5.34. Mechanical Engineering Technicians--Priority Performance Tasks...................................... 99 Table 5.35. Electro-Mechanical Technicians--Priority Academic Skills................................................ 100 Table 5.36. Electro-Mechanical Technicians--Priority Performance Tasks ........................................... 101 Table 5.37. Production Technicians--Priority Academic Skills.............................................................. 102 Table 5.38. Production Technicians--Priority Performance Tasks ......................................................... 103 Table 5.39. Facilities Management/Systems Technicians--Priority Academic Skills ............................ 104 Table 5.40. Facilities Management/Systems Technicians--Priority Performance Tasks ........................ 105 Table 6.1. Summary of Proposed Strategies and Actions ...................................................................... 112 v List of Abbreviations AAS ABET AFL-CIO AS ASU ATE, ATEC ATM/SONET CAD, CADD CAM CCITT CIP CNC CNEU CRM CTC EDC ERP EVIT FAA GED HTI ICT ISO IT JACMET LEED MANCEF MATEC MCCCD MEMS MRP NACFAM NASA NCME NCTT NIMS NMT NNIN NSF OEM OJT PLTW POTS ROHS SAME-TEC SCME Associate in Applied Sciences Accreditation Board for Engineering and Technology American Federation of Labor and Congress of Industrial Organizations Associate in Science Arizona State University Advanced Technology Education, Advanced Technology Education Center Asynchronous transfer mode/synchronous optical network Computer-aided design/drafting Computer-aided manufacturing Community Colleges for Innovative Technology Transfer Classification of Instructional Program Computer numerical control Center for Nanotechnology Education and Utilization Customer Relationship Management Convergence Technology Center Economic development council Enterprise resource planning East Valley Institute of Technology Federal Aviation Administration General Equivalency Diploma High Tech Institute information and communications technology International Organization for Standardization Information technology Joint Alliance of Companies Managing Education for Technology Leadership in Energy and Environmental Design Micro and Nanotechnology Commercialization Education Foundation Maricopa Advanced Technology Education Center Maricopa County Community College District Micro electro-mechanical systems Manufacturing resource planning National Coalition for Advanced Manufacturing National Aeronautics and Space Administration National Center for Manufacturing Education National Center for Telecommunications Technology National Institute for Metalworking Skills, Inc. Nanomanufacturing Technology National Nanotechnology Infrastructure Network National Science Foundation Original equipment manufacturer On-the-job training Project Lead the Way Plain old telephone service Removal of Hazardous Substances (European Union) Semiconductors, Automated Manufacturing, and Electronics--Training and Education Conference Southwest Center for Microsystems Education vi SEMI SHPE SRP SWOT TVI Semiconductor Equipment and Materials International Society of Hispanic Professional Engineers Salt River Project Strengths, weaknesses, opportunities, and threats Albuquerque Technical Vocational Institute vii viii Executive Summary INTRODUCTION This report, Competing with Talent: High-Technology Manufacturing's Future in Greater Phoenix, has been developed in the context of overarching global trends that are impacting the technology manufacturing workplace locally as well Study Sponsors and Supporters as throughout the United States. Greater Phoenix's high-technology The Maricopa County Community College District (MCCCD) entered manufacturers are increasingly dependent into a unique partnership with the Salt River Project (SRP) to undertake on the knowledge and skills of their this extensive study. workers to maintain their advantage. It is Joining MCCCD and SRP in supporting this study are the Arizona in this context that the Maricopa County Department of Commerce, Greater Phoenix Economic Council, Phoenix Community College District (MCCCD), Workforce Connection (City of Phoenix Workforce Investment Board), in collaboration with and with the support Maricopa Workforce Connections (Maricopa County Workforce of a range of organizations in the region, Investment Board), and the Arizona State University Ira A. Fulton School has undertaken this study. As part of its of Engineering. strategic planning efforts, the MCCCD system engaged Battelle's Technology Additionally, numerous industry groups and other organizations assisted Partnership Practice to develop a highwith this effort, including the Arizona Association of Industries, American technology manufacturing workforce Electronics Association (AeA)--Arizona Council, Arizona Aerospace and strategy focused on technical workers for Defense Industry Association, Arizona Manufacturing Network, Arizona whom MCCCD is a major education Technology Council, Arizona Department of Education - Career and provider and deliverer of programs and Technical Education, and the Flinn Foundation. services. This study and report are intended to determine and respond to the changing workforce needs of the Greater Phoenix area's hightech manufacturing base as it competes in the global marketplace. While focused on MCCCD, it also has implications for other education providers, for Arizona State University (ASU), and for state and local economic development agencies and, most importantly, will require the leadership and support of hightech manufacturers and their trade associations for implementation. The analysis contained in this study forecasts that the number of technicians within key industry high-tech manufacturing segments (i.e., advanced materials, aerospace and defense, electronics and instruments, information and telecom services, and semiconductors and computer hardware) will likely grow from nearly 14,600 to more than 18,000 over the next 2 years--an overall 24 percent growth rate. This job growth, combined with the number of planned replacement hires, will result in nearly 5,000 workers entering new working opportunities during the next 2 years. The Greater Phoenix region's high-tech manufacturers are at new crossroads as economic prospects improve, yet changing market dynamics and global competition require new thinking in terms of production capacities, operational capabilities, and the technologies that will become the heart of their future products. Key to the firms' strategic and operational planning, regarding such issues as investment, engineering, product development, manufacturing, and sourcing/supplier development, ix will be whether the workforce capabilities and capacities exist in the Greater Phoenix region to be competitive. According to the interviewed firms, the regional workforce development and training infrastructure, both public and private, has been at times either responsive or inattentive. Consequently, the significant demand and requirement for new technicians over the next few years will be difficult to impossible to meet solely on the population growth of the region. While some firms may succeed by hiring experienced workers from other firms, the region's economic condition could suffer without an influx of new technicians into the pipeline. The strategies and actions described and detailed in this report provide guidance for firms, industries, and the public and private educational infrastructure to come together to address these needs and sustain these workforce opportunities and potential to meet high-tech manufacturers' projected demands in the short and long term. A recent survey (the 2005 Skills Gap Report) by the National Association of Manufacturers, the Manufacturing Institute's Center for Workforce Success, and Deloitte Consulting LLP found the following: � Today's skill shortages are extremely broad and deep, cutting across industry sectors and impacting more than 80 percent of the companies surveyed. � Skill shortages are having a widespread impact on manufacturers' abilities to achieve production levels, increase productivity, and meet customer demands. � High-performance workforce requirements have significantly increased as a result of the skills gap shortage and the challenge of competing in a global economy, according to nearly 75 percent of survey respondents. 2005 Skills Gap Report--A Survey of the American Manufacturing Workforce, available at http://www.deloitte.com/dtt/cda/doc/content/us_mfg _Talent%2 0Man agement_120 50 5.pdf INDUSTRY OVERVIEW: EMPLOYMENT STRUCTURE AND CONCENTRATION The question is, "Why focus on high-technology manufacturing?" There are several answers: � � � � It provides much-needed economic base employment and economic diversity to the region's economy. Manufacturing wages are higher than total private sector wages on average and higher than the average wages in "service" jobs. High-tech manufacturing firms pay even higher wages--typically because of increased skill requirements. The Greater Phoenix region is specialized relative to the nation in employment in many of the key high-tech manufacturing areas--Maricopa County is three times as specialized in semiconductors and computer hardware and two times as specialized in aerospace and defense as the nation. Because of these specializations, the region needs and will require increasingly sophisticated technical workers for these high-tech manufacturing firms to compete in fierce global competition for market share, profits, and leadership. Additionally, it is important for the Greater Phoenix region to link high-skilled manufacturing with highskilled services to mutually reinforce its knowledge economy. Important segments of high-tech "services" (e.g., information technology [IT] and telecommunications development, which often includes some firms that actually manufacture relevant devices) could complement the region's high-tech manufacturers and also pay very high wages--again, typically because of higher skill requirements. Recent newspaper headlines in Phoenix show both the strength and growth in high-tech manufacturing in the region, including Intel's $3 billion investment in additional facilities in Chandler and expansion of its technician workforce. But, other examples include ON semiconductor, which has decided to consolidate x offshore wafer fabrication into Phoenix; Boeing Mesa's 2005 receipt of the Shingo prize for excellence in world-class manufacturing; and decisions by a range of smaller aerospace, telecommunications, and engineering companies to locate in Greater Phoenix. Table E.1 provides detailed information regarding the importance of overall manufacturing, overall services, and key high-tech�relevant industry segments on the overall employment and wage structure for the state of Arizona and for Maricopa County. In every instance, these industry segments exceed overall average private sector wages, as well as overall average wages in service industries. Table E.1. Importance of Manufacturing, Services, and "High-Tech" to Greater Phoenix Region Industry Title Total Private Sector Manufacturing Computer and Electronic Products Electrical Equipment and Appliances Transportation Equipment Service-Providing Industries Software Publishers Telecommunications Professional and Technical Services 2004 Employment Arizona 1,980,818 176,718 44,240 2,109 31,343 1,575,009 3,525 18,436 109,539 Maricopa County 1,416,609 128,616 38,175 1,291 18,501 1,139,696 1,392 15,903 84,005 2004 Average Annual Wage Arizona $ 36,208 $ 52,723 $ 78,061 $ 40,634 $ 65,809 $ 34,596 $ 64,191 $ 51,313 $ 52,494 Maricopa County $ 38,728 $ 54,182 $ 80,187 $ 39,348 $ 61,165 $ 37,064 $ 71,134 $ 51,232 $ 54,325 Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages The approach for this study focused on five specific key segments of high-tech manufacturing, as shown in Table E.2.1 These five segments were chosen because they have historically employed large numbers of technician-level workers and have been key markets for the services and students of the Maricopa Community Colleges and other regional education/training institutions. Table E.2. Regional Employment Structure for High-Tech Manufacturing Key High-Tech Segments Advanced Materials Aerospace and Defense Electronics and Instruments Information and Telecom Services Semiconductors and Computer Hardware 2004 Maricopa County Segment Employment 5,700 14,649 12,792 31,502 26,552 2004 Maricopa County Employment Concentration* 0.39 2.11 1.05 0.91 3.00 2004 State of Arizona Employment Concentration* 0.44 2.73 0.93 0.84 2.48 Employment concentration (also known as a location quotient) is a measure of relative employment share comparing a specific region with, in this instance, the United States. Values equal to 1.0 indicate that the concentration of an industry's employment is equal to that of the United States, with values above and below 1.0 indicating greater or lesser concentration, respectively. Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages and Battelle calculations 1 As conceived, the study was also going to examine the sustainable systems industry. The results of the project found that firms do not typically classify themselves as in the sustainable systems industry (only two firms considered themselves in the sustainable systems industry) and hence were not included in further analysis. Many firms do, however, practice sustainable systems approaches, are engaged in "green" or renewable resource technologies, or are involved in environmentally responsible manufacturing via international standards and requirements such as ISO 14001 and the European Union's new Removal of Hazardous Substances directive. xi PROJECT FOCUS AND METHODOLOGY This study has been organized around four principal tasks as shown in Figure E.1: � Internal Program Assessment--including both a programmatic inventory and a strengths, weaknesses, opportunities, and threats (SWOT) analysis of MCCCD's high-tech manufacturing efforts Benchmarking and Competitive Positioning Analysis Industry Needs Assessment--primary data collection Strategic Framework--including Strategies, Actions, and Implementation Plan Development. � � � Figure E.1. Project Work Plan Internal Internal Program Assessment Programmatic Inventory and SWOT Analysis Strategic Framework Industry Needs Assessment Methodology and Data Collection Benchmarking and Competitive Positioning Analysis � Analysis � Key Issues � Strategies � Actions � Priorities � Time Frame � Resources � First Year Work Plan � Relationships & Connectivity � Replicable Data Base Communications to Regional Stakeholders Four complementary efforts were undertaken to develop a detailed picture of current and emerging industry needs among high-tech manufacturing employers in Greater Phoenix, including an Internet survey, direct interviews with one or more individuals in more than 100 high-tech manufacturing firms, a detailed skills assessment instrument, and focus groups in the key industry segments. Data were collected by the following means: 1. An Internet-based survey, open to all the region's high-tech manufacturers, was used to obtain a better understanding of the quantities and types of technicians employed, as well as overall operational and technological trends affecting these firms and their workplaces. 2. Company interviews were conducted with a cross section of 107 firms from the above industries. For each participating firm, managers responsible for each of three different functions within the business--strategy, operations, and human resources--were interviewed. The Battelle project team conducted the company interviews from late May through September 2005. 3. Firms interviewed were also asked to complete a more detailed skills assessment questionnaire, which articulates the disciplinary knowledge and skill sets required for each of up to 10 types of technician positions. 4. Finally, selected firms and stakeholders were invited to participate in 2-hour focus groups, organized by industry sectors. Four groups were held in early November, during which time the firms validated findings from the other sources and gave further dimension to their workforce needs as well as potential action items to address those needs going forward. xii Company-level information has been aggregated to develop a better overall picture of current and emerging needs. The resulting analysis includes an assessment of the skills, employer training and education needs, and timing and priorities of demand and identifies key issues that need to be addressed for the retention and growth of high-tech manufacturing in the region. MARICOPA COMMUNITY COLLEGES' HIGH-TECH MANUFACTURING PROGRAMS: INVENTORY AND ISSUES There are significant challenges and opportunities for the MCCCD. Given their collective size and breadth, the 10 MCCCD institutions come into contact with a significant part of Greater Phoenix's current and future workforce--Maricopa's 277,000 student enrollment is equivalent to nearly 15 percent of the region's current labor force of 1.9 million. Key findings from this inventory include the following: � MCCCD institutions have developed programs that respond to the profile of Greater Phoenix's hightech manufacturing base, including the manufacturing and assembly aspects of these industries, but also programs that support the broad needs of these firms (e.g., communications technologies, "clean rooms"). Many of these programs are certificate-based. o Over the 6-year period, 1999 to 2004, the Maricopa Community Colleges accounted for only 23 percent of high-tech manufacturing�related Associate's degrees in the Greater Phoenix region--rising to 28 percent of the Associate's degrees in 2004. The MCCCD system, including the Maricopa Skill Center, is virtually the only provider of certificates for high-tech manufacturing disciplines in Greater Phoenix, accounting for 99 percent of high-tech manufacturing�related certificates in the region in 1999 to 2004. o � Other educational institutions in the Greater Phoenix region are also responding to the needs of firms to increase the supply of technical talent. Figure E.2 shows trends in supply as well as the performance of the region's educational deliverers including MCCCD. Private, proprietary institutions have generally focused their programs and enrollments on traditional regional industry strengths and interest in IT, given the concentration of computer and IT firms, and the need of all industries for more "information" workers. 400 DeVry University - Arizona 350 High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District Number of Associate's Degrees Awarded 300 Figure E.2. High-Tech Manufacturing Associate's Degrees Awarded by Regional Institutions 250 200 150 100 50 0 1999 2000 2001 Year 2002 2003 2004 xiii MCCCD institutions account for a modest share of regional high-tech manufacturing Associate's degrees. Given the strong regional industry specializations in such industries as semiconductors, electronics, aerospace, and defense, both at the original equipment manufacturer and supplier levels, there does appear to be a need to increase partnerships with and respond to the needs of these industries for future workers. High-tech manufacturing represents an opportunity area that has not received sufficient attention and focus at MCCCD or other educational institutions in the Greater Phoenix region. STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS OF MCCCD'S ACTIVITIES IN ADDRESSING HIGH-TECH MANUFACTURING WORKFORCE NEEDS The SWOT analysis indicates the following major strengths and weaknesses of MCCCD's current approaches to meeting high-tech manufacturers' workforce needs: � � Individual college programs have been responsive to industry need, but do not appear to gain from system synergies or cross marketing at a regional level. The programs are accessible during the day and in the evening and are relatively affordable, enabling incumbent workers to pursue certificates and degrees with and without tuition reimbursement from their employers. The capacity and industry linkages of many programs are enhanced by the use of adjunct faculty from industry as well as industry advisory boards. However, there is currently no standing industry advisory board at the system level to achieve synergies or pursue interdisciplinary or multiinstitutional opportunities. MCCCD's relatively predictable funding base and affordable tuition make it more accessible to Greater Phoenix's growing and increasingly diverse new workforce. MCCCD's interrelationship with ASU in general and ASU Polytechnic in particular enhances ASU's ability to further develop its advanced engineering and research programs. � � � MCCCD's challenges for the future include � Renewing and upgrading programs at a pace that responds to and sometimes anticipates industry requirements, without depending too heavily on any one firm or industry for long-term success and scale; and Exhibiting nimbleness and agility in program design and delivery required by increasing competition (within the educational marketplace) including both traditional classroom-based and distance learning. � Ultimately, the success of MCCCD's response to these challenges will depend on its ability to walk the two fine lines of its customers' supply and demand. This will require being able to respond quickly to the technical and skill needs of Greater Phoenix's high-tech manufacturing firms that depend on talent to maintain their competitive edge and develop programs, pathways, certificates, and curricula leading to successful, high-skill, high-wage jobs for MCCCD's students. With targeted efforts, MCCCD institutions have developed programs that respond to the profile of Greater Phoenix's high-tech manufacturing base, such as for the semiconductor/advanced electronics industry. Moreover, while MCCCD institutions have successfully developed curricula around the manufacturing and assembly aspects of these industries, they have also developed curricula to support the xiv broad needs of these firms, including key communications technologies and computer systems and networking, as well as the advanced facility management and operational support capabilities to operate "clean room" and specialized environmental functions. But, the MCCCD system is lagging in the output of qualified workers for the region's and the state's high-tech manufacturing industries--leaving market share to other institutions to capture. MCCCD has many opportunities and strengths on which to build. BENCHMARKING AND COMPETITIVE POSITIONING ANALYSIS Just as firms attempt to learn from the "best in class" academic institutions, regions, and states can learn from one another. A benchmark analysis of eight centers based at community colleges around the nation found several trends: � � Centers that have emerged as national networks of regional centers have evolved to organizations focused on curriculum development and distribution. Other centers are more regionally based and address a range of industry needs--from developing and delivering certificate and individual credit courses to producing Associate's degree holders in targeted disciplines. At both regional and national levels, linkages of universities with community colleges appear to be increasing. Centers involve both 4-year and graduate institutions in (1) defining and applying industry standards, (2) collaborating on curriculum development, and (3) articulating transfers across degree levels and programs. The community college is the nexus for higher and secondary education as well as industry and economic development to come together to address talent generation needs in a more coordinated and concerted fashion. Centers, particularly those initially focused on a single industry such as telecommunications or semiconductors, have tended to evolve and broaden their foci. In the case of the semiconductor industry that is prone to periods of growth and contraction, centers have included complementary microelectronics industries that represent more stable employment outlooks. When industries undergo fundamental changes, the higher education collaborative, starting with the community colleges, is in a position to work with industry to define new standards, required skills, and competencies. An example of this is reflected in the development of a new "convergent technician" for the telecommunications industry. The experiences of these centers in responding to the technological changes and demands of their constituents and industrial partners are a reflection of the larger high-tech manufacturing and telecommunications workplace. Communications connectivity, regardless of content and industry, is a cross-cutting need. Similarly, there is a need to produce graduates with the ability to work in an information-rich and connected environment. Given the increasing pace of change, centers are finding ways to provide accessible education--both in the classroom and online--to incumbent workers needing to upgrade their skills to sustain their ability in a current industry or to transition to another one. In the newer technology areas, such as nanotechnology, it is in the shared long-term interest of both industry and the different levels of higher education to reach into the K-12 system to develop courses and career awareness in order to develop and expand a talent pipeline. Some of the benchmark centers have developed mentoring activities to increase this pipeline, with efforts targeted to populations with historically lower participation in technology careers. � � � � � � xv � Successful programs and centers also tend to be explicitly tied to regional strategies for technologybased growth. Supporting and maintaining the leadership and meaningful participation of industry and academic champions are critical to staying focused and responding to new opportunities and challenges over time. THE GREATER PHOENIX REGION'S HIGH-TECH MANUFACTURING TECHNICIANLEVEL WORKFORCE: CURRENT NEEDS AND FUTURE REQUIREMENTS Background One of the principal tasks of this project is to solicit and collect detailed information from the Greater Phoenix region's high-tech manufacturing firms that can provide understanding and insight into the following major components: � � � The current situation, key issues, and challenges facing the region's high-tech manufacturers The current and future demand for technician-level employees The breadth of adoption and depth of usage of advanced production and operations capabilities and new advanced technologies The specific academic skills required of and technical tasks performed by these technicians. Key Findings-- Strategic Competitiveness Positioning Respondents in general are bullish in terms of their expectations of future sales. Systems development and engineering requirements are growing more complex--technicians need experiential knowledge of system performance, not just the individual components. Lean/Six-Sigma efforts are increasingly being directed at system improvement opportunities versus individual operations/machines. Competitive advantage of domestic manufacturing favors products with higher engineering content that are quick to market. Arizona has a lower cost structure than neighboring California and other parts of the United States and has other geographic advantages. High-tech manufacturing requires constant market monitoring and constant product development cycles to maintain competitiveness. Global competition drives high-tech manufacturing. Customer demand and expectations are increasing. Cost controls and reductions are not lessening. Finding and retaining key employees and talent/technical skills/functions are becoming critical challenges. Increasingly, high-tech manufacturing in Greater Phoenix is facing capacity constraints--machines and space. Insufficient engineering and technical talent and a � This information is not only useful for understanding the current condition and future potential of the region's hightech firms but also for providing regional educators, such as the Maricopa Community Colleges, a mechanism to better determine whether their curricula and programs are meeting the needs of the region's high-tech manufacturing employers. In addition, this information provides guidance to educators and academic institutions regarding how best to enhance and improve the curricula to meet high-tech manufacturing firms' future needs. dwindling pipeline of supply may constrain growth of highThis project undertook a somewhat unprecedented intech manufacturing in the Greater Phoenix region. depth analysis of industry needs, aspirations, and gaps in addressing its current and future talent base. The industry data collection process included three specific approaches including a detailed Internet survey, an intensive and comprehensive interview process, and a detailed skills assessment effort. Demand A detailed estimate and forecast based on industry responses show that the number of technicians within the five key industry segments will likely grow from nearly 14,600 to more than 18,000 over the next 2 years--an overall 24 percent growth rate. This job growth, of nearly 3,500 workers, combined with nearly 1,500 planned replacement hires, will result in nearly 5,000 workers entering new working opportunities during the next 2 years (Figure E.3). xvi Figure E.3. Expanding Technician Workforce, by Key Industry Segment Current Technician Workforce 845 3,386 2,366 3,022 4,953 14,571 Advanced Materials Aerospace/Defense Electronics/Instruments Information/Telecom Services Semiconductors/Computer Hardware Future Technician Workforce 1,036 3,654 3,525 4,044 5,770 18,030 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Number of Technicians Currently, the four largest technician types in terms of employment--production, electrical/electronic engineering, manufacturing software/applications, and electromechanical technicians--account for nearly eight out of every 10 (78 percent) of the technicians in the Key Findings-- five key segments. These four types will also remain the Operational Requirements largest in terms of future employment, accounting for a Technicians will need to have more of a full "systems similar share (78 percent) (Figure E.4). perspective" in the future. Within the overall 24 percent growth, three technician types--science; manufacturing software/application development; and drafting, design, and product development technicians--will see increases of more than 33 percent over the next 2 years. From the context of workforce development and training, a calculation of potential training demand indicates that more than 9,000 of these technicians (50 percent) are very likely to need at least some level, if not substantial amounts, of formal and informal training over the next 2 years. Finding employees with required talent and technical skills is getting increasingly difficult. The need to find ways to finance and integrate new machinery is increasing. Firms are looking beyond labor costs to find other costreduction opportunities. Necessities include on-time delivery and supply chain management. Smaller firms often have difficulty staying abreast of new and changing standards, requirements, and technologies. High-tech manufacturing requires quality management and control. Firms see continuous system improvement and optimization as ongoing priorities. All workers need to collect, analyze, and use information. Availability of IT workers may become limiting. xvii Figure E.4. Expanding Technician Workforce, by Technician Type Production Technicians Electrical/Electronic Engineering Technicians Manufacturing Software/Application Technicians Electro-Mechanical Technicians Other Various Technician-level Employees Drafting, Design, and Product Development Technicians Facilities Management/Systems Technicians Science Technicians Mechanical Engineering Technicians Industrial Engineering Technicians 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Current Technician Workforce Future Technician Workforce Number of Technicians Education Delivery and Focus The question of where and how these technicians will receive this training remains unanswered. Overall, 42 percent of the region's high-tech manufacturing firms have used community colleges for some level of formal training for their technician workforce. While this is an important aspect, especially with regards to retraining and skill enhancing, the fact that less than 20 percent of the interviewed firms recruit from any of the Maricopa Community Colleges' campuses signifies that there may be a significant disconnect within the academe-toindustry pipeline for new technicians. Key Findings-- Technical Workforce Limited English-speaking ability among production workers/operators is an important issue. Lack of training in manual machining and the associated job design skills is becoming an issue. "Systems" understanding and thinking are becoming more critical. Demand is increasing for more well-rounded skill sets. Mix of technician requirements in more high-tech manufacturing operations is changing. Finding and keeping talent/technical skills will continue to pose a challenge. Cross-training of employees is becoming more essential. All firms, regardless of size, expect and acknowledge wage competition to recruit and retain their workforce. Technology Focus High-tech manufacturers emphasize "soft skills" as Within the region's high-tech manufacturing segments, critical. firms' and technicians' new and expanding use of Screening for employability is adding costs for high-tech advanced production and operations capabilities and manufacturers. advanced technologies provides an understanding of the Not all high-tech manufacturers can afford the Greater Phoenix region's market rate entry-level pay scales. firm's "high-tech" dynamics. These results also provide a Competing with other sectors in a tight labor market is a surrogate "curriculum" demand function for use by the growing concern. region's educational infrastructure, including the Maricopa Community Colleges. Important elements, as shown in Table E.3, include the following: � One-half or more of all the region's high-tech firms are engaged in supply chain management activities. Half or more of the firms outside the information and telecom services segment are engaged in lean manufacturing, continuous improvement (CI), or other performance/operations improvement activities. xviii � Industry segments are placing much significance both now and into the future on engineering, design, and product development--over two-thirds of the firms in the aerospace and defense, semiconductors and computer hardware, and electronics and instruments segments are involved in these areas. Key segment firms show relative diversity in technology use but a fairly low level of current and future technology adoption (most technologies are used, but by only one-third of the firms or less in each segment). Only six technologies reach current adoption rates of 50 percent or more in any single industry segment. Over the next 3 to 5 years, three additional technologies will reach the 50 percent adoption rate within a specific industry segment. Only one technology, sensors and control technologies, is used by a majority of firms in two industry segments--aerospace and defense, and electronics and instruments. While no technologies exceeding 50 percent adoption in the future reached this level through significant growth rates, four technologies (photovoltaic/fuel cells, renewable/green technologies, smart materials, and nanotechnologies) have current adoption rates that will increase by more than 20 percent over the next 3 to 5 years. Semiconductors and Computer Hardware Currently In 3�5 Years � � � Table E.3. Breadth of Adoption Summary--Important Capabilities and Technologies by Key Segment Key Segments Advanced Production and Operations Capabilities Advanced Machining Advanced Processing Supply Chain Management/Logistics Performance/Operations Improvement Eng., Design, & Product Development Advanced Technologies Composite Technologies Embedded Systems Technologies Microelectronics/MEMS Technologies Nanotechnologies Photovoltaic/Fuel Cell Technologies Optical/Photonics Technologies Renewable/Green Technologies Semiconductor/Related Technologies Sensors/Control Technologies Smart Material Technologies Wireless Systems Technologies 29% 14% 14% 14% 14% 14% 29% 14% 43% 29% 29% 29% 14% 29% 29% 14% 14% 43% 14% 43% 29% 29% 43% 26% 22% 13% 22% 30% 13% 35% 57% 26% 30% 52% 39% 39% 35% 39% 35% 13% 39% 61% 35% 35% 17% 17% 17% 8% 13% 25% 25% 21% 63% 4% 42% 17% 17% 25% 8% 17% 25% 25% 21% 63% 4% 46% 13% 50% 25% 13% 13% 38% 13% 25% 13% 13% 50% 25% 50% 25% 25% 38% 50% 38% 25% 25% 38% 63% 16% 32% 63% 47% 0% 32% 16% 84% 42% 21% 47% 16% 37% 68% 53% 5% 37% 16% 84% 42% 32% 47% Advanced Materials Currently In 3�5 Years Aerospace and Defense Currently In 3�5 Years Electronics and Instruments Currently In 3�5 Years Information and Telecom Services Currently In 3�5 Years 43% 29% 57% 100% 29% 43% 43% 57% 100% 29% 70% 43% 70% 87% 87% 70% 52% 78% 91% 96% 21% 25% 54% 54% 63% 25% 33% 54% 58% 71% 0% 13% 50% 38% 25% 0% 13% 50% 38% 25% 21% 47% 53% 84% 74% 21% 42% 58% 84% 74% Legend At least 50% of the segments' firms currently use the advanced production and operations capability or technology At least 50% of the segments' firms will use the advanced production and operations capability or technology over the next 3�5 years X% Current to future increase of 20% or more firms Skills and Performance Responses to the skills assessment questionnaires provide very detailed information regarding the current and future academic skill and technical performance tasks required by the Greater Phoenix region's hightech manufacturers. While the needs of each employer are specific, and the nature of each technician job is unique, some overarching themes emerged from these data, including the following: xix � High-tech manufacturing employers almost uniformly require what might be viewed as a basic or "core" set of academic skills from their technicians. Skills such as basic problem solving, reading, arithmetic, logical reasoning, the ability to work in teams, and overall learning skills are almost always required (Table E.4). Table E.4. Summary of Key Higher-Priority Academic Skills Across the Technician Types Internet Tools--E-mail, Web-Enabled Applications Business Tools--Word Processing/Spreadsheets/Databases General Engineering Understanding Business Applications--CAD/CAM, MRP/ERP Systems Reading General Materials, Instructions, Policies, Procedures Reading Technical and Business Documents Writing General Materials, Instructions, Policies, Procedures Learning Skills, Capacity, and Capability Logical Reasoning Technician Types Ability to Work in Teams Problem Solving Science Technicians Drafting, Design, and Product Development Technicians Manufacturing Software/Application Technicians Electrical/Electronic Engineering Technicians Mechanical Engineering Technicians Electromechanical Technicians Production Technicians Facilities Management/Systems Technicians X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Includes Skills Considered High Priority for Two or More Technician Types � The ability to work well in teams is almost universally reported as a higher-priority requirement. It is clear that employers in Greater Phoenix also value workers with critical thinking and problem-solving skills and those who can communicate effectively and work together. The scope of knowledge/skills can vary greatly across the technician types. Technicians involved in drafting, design, and product development and those working in manufacturing software must have a broad set of knowledge and skills in order to meet their employers' expectations. Conversely, production technicians were assigned many fewer high-priority academic skills and no high-priority performance tasks. While technical knowledge and skill requirements do vary across the technician types, those assigned as high priority are expected to increase in importance. Local employers are prioritizing those key academic and performance areas for each technician type they employ, and it is clear that the critical items will only become more important in the future. � � In addition to academic skills, employers were asked to prioritize the performance tasks of their specific technicians. As one might expect, the performance tasks across the many technician types vary considerably. Only six tasks were considered high priority for two or more technician types--four of the technician types are engaged in selecting equipment; three are engaged in systems troubleshooting; and two each are engaged in performing product design, selecting materials, engaging in quality control activities, or monitoring and adjusting systems. The information developed through this industry needs assessment is not only useful for understanding the current condition and future potential of the region's high-tech firms but also gives regional educators, Critical Thinking Arithmetic xx such as the Maricopa Community Colleges, a mechanism to better determine whether their curricula and programs are meeting the needs of the region's high-tech manufacturing employers. In addition, this information provides guidance to educators and academic institutions regarding how best to enhance and improve the curriculum to meet high-tech manufacturing firms' future needs. STRATEGIC PLAN A vision for the Greater Phoenix region must be developed to ensure that the region has the talent pool essential to the growth and competitiveness of high-technology manufacturing today and tomorrow. Vision The vision for Maricopa Community Colleges and the Greater Phoenix region regarding high-tech manufacturing talent is as follows: Establish the Greater Phoenix region as a premier location for developing, maintaining, and upgrading the technician talent base needed for U.S.-based high-technology manufacturing to remain globally competitive in such markets as semiconductors, aerospace, defense, electronics, instruments, and related support industries by the year 2016. Mission To achieve this vision, the MCCCD serves as a nexus where the interests of K-12 and higher education come together to address systemic needs and opportunities with industry as a full partner. This is accomplished by the following: � � Mobilizing public and private leadership and increasing citizen knowledge and understanding of the key role and economic opportunities provided by high-tech manufacturing. Through an organized and ongoing campaign, communicating key messages to internal and external audiences to inform and educate them about the opportunities and regional performance on key metrics of success. Ongoing and proactive marketing, including active outreach and ongoing interaction with industry along the educational continuum, beginning with career awareness and support for science and math teaching at the elementary school level, experiential and problem-based learning at the middle and high school levels, and interactions and two-way exchanges of higher education teachers and industry professionals. Developing well-defined and visible "career ladders" and talent clusters that encourage engineering and technical talent to be developed and retained in the state both throughout the educational pipeline as well as within industry. Creating and implementing mechanisms, programs, and incentives that encourage continual investment in skills development and education that also lead to profitable sales, income, and wealth generation for manufacturers, the state, and its citizens. Ensuring that state and local governments invest and participate in mechanisms to support and facilitate lifelong learning to ensure that the workforce continues to have the critical skills for success. � � � � xxi Tactics In terms of tactics, the Greater Phoenix region will achieve this vision and mission by the following: � � � Collecting information on the needs of high-tech manufacturing through surveys and other means to ensure that private sector needs and requirements are being addressed. Converting such survey results into concrete degrees, certificate programs, technical assistance, and problem-solving support as needed by high-tech manufacturers. Collaborating among and between levels of education providers, from career education in high schools, to community colleges, to engineering and related programs in universities, to offer lifelong educational opportunities and careers for students and workers while working and living in the Greater Phoenix region. Consulting with high-tech manufacturing more heavily in the design and development stages of curriculum and skill determination. Encouraging industry to increase the level and scale of internships, co-op education, and involvement in public education, including science and math education. Communicating the importance of high-tech manufacturing to Arizona's economic future, including that it offers clean industries; good, well-paying jobs; and lifelong careers. � � � STRATEGIES AND ACTIONS For high-technology manufacturing to continue to grow and remain competitive as the base of Greater Phoenix's knowledge economy, the various stakeholders--industry, higher education and the community colleges, the K-12 system, and the community--must simultaneously address a range of challenges and opportunities to build and strengthen the talent pipeline. Five interrelated strategies and 11 associated actions are proposed for high-tech manufacturers, MCCCD and other education providers, government, and the broader community to achieve the mission and vision put forth. Strategy One--Strengthen and Build the Talent Pipeline. The competitiveness of Greater Phoenix's high-technology manufacturing sector will be increasingly dependent on the region's talent base. Strategy Two--Mount a Multifaceted Regional Marketing Program. It is critical that the importance of high-tech manufacturing to the region's and state's future be better understood to encourage students, parents, and educators to see the career opportunities and economic future these industries offer. Strategy Three--Develop and Continuously Improve Programs. By directly engaging industry on a more consistent and system-wide basis, and utilizing industry equipment, facilities, and personnel strategically, education and training programs can be strengthened and enrollments increased to meet current and projected demand. Strategy Four--Increase and Develop System Capacity to Deliver Programs and Services Consistent with Industry and Employee Needs. Flexible and alternative methods of delivering educational programs that meet the needs of employers must be developed. xxii Strategy Five--Partner with Industry and the Community to Chart Shared Goals and Evaluate Performance. Top leadership and commitment are key to building and sustaining the activities presented in this plan. These five strategies, and the 11 proposed actions they encompass, are outlined in Table E.5. Implementation time for most of these strategies and actions is anticipated over a 1- to 5-year period. Immediate priorities should be undertaken as soon as possible, while short-term priorities should be undertaken in the first year. Mid-term priorities should be implemented in the 1- to 3-year time period, and long-term priorities targeted for realization over a 3- to 5-year time horizon. Table E.5. Summary of Proposed Strategies and Actions Strategy Action Action One: Develop the region's high-tech manufacturing talent pipeline by increasing high-tech manufacturing technology career awareness and pathways Action Two: Establish more targeted outreach and mentoring programs with high-tech manufacturers to work with diverse student populations Action Three: Develop consistent branding, marketing, and communications program for high-tech manufacturing programs and communications program for Maricopa Community Colleges Strategy Two: Mount a Multifaceted Regional Marketing Program Action Four: Establish and support a regional outreach and "calls" program focused on the base of high-technology firms in the Greater Phoenix region Action Five: Create a High-Tech Manufacturing Workforce Forum offering informational briefings and workshops on manufacturing technology developments Action Six: Focus first on strengthening and aligning existing programs and curricula with industry needs. Develop new programs when existing program cannot be adapted to meet an emerging need Action Seven: Establish and resource a system-level office to manage and coordinate the delivery of curricula and customized programs for high-tech manufacturers across Greater Phoenix Action Eight: Develop mechanisms to address key opportunities such as incumbent worker education and training to address near-term shortages of employees for high-tech manufacturing Action Nine: Promote, support, and participate in industry training consortia Action Ten: Create a Greater Phoenix High-Tech Manufacturing Workforce Advisory Board Action Eleven: Establish a high-tech manufacturing indicator scorecard Time Frame Mid-Term Strategy One: Strengthen and Build the Talent Pipeline Immediate Immediate to Mid-Term Short- and Mid-Term Mid-Term Strategy Three: Develop and Continuously Improve Programs Immediate Short- and Mid-Term Strategy Four: Increase and Develop System Capacity to Deliver Programs and Services Consistent with Industry and Employee Needs Short- and Mid-Term Strategy Five: Partner with Industry and the Community to Chart Shared Goals and Evaluate Performance Short- and Long-Term Short-Term Immediate xxiii IMPLEMENTATION PLAN Critical Actions For this overall set of strategies to have their fullest impact on high-tech manufacturing in the region, certain of the 11 actions must be considered the most critical. Battelle has identified five actions as the underlying foundation for maximizing benefits to firms, individuals, and the community colleges: � � � � � Develop consistent branding, marketing, and communications program for high-tech manufacturing programs and communications program for Maricopa Community Colleges Establish and support a regional outreach and "calls" program focused on the base of high-technology firms in the Greater Phoenix region Strengthen and align existing programs and curricula with industry needs, and develop new programs when existing program cannot be adapted to meet an emerging need Create a Greater Phoenix High-Tech Manufacturing Workforce Advisory Board Develop the region's high-tech manufacturing talent pipeline by increasing high-tech manufacturing technology career awareness and pathways. Immediate Work Plan Priorities Immediate work plan priorities are those steps that the private and public sectors in Maricopa County should undertake in the first 12 months of strategy implementation. The following actions should be undertaken in the first year of implementing this strategy: � � � � � � Establish the Greater Phoenix High-Tech Manufacturing Workforce Advisory Board Begin the planning for and updating of a high-tech manufacturing indicator scorecard Initiate branding and marketing program for high-tech manufacturing in the region and state and at MCCCD Establish and resource an MCCCD system-level office to manage and coordinate the delivery of curricula and customized programs for high-tech manufacturers Utilizing the results of this report, begin the process of strengthening and aligning existing programs and curricula with industry needs and identify new programs where needed Work with high-tech manufacturers and their trade associations to establish targeted outreach and mentoring programs to work with diverse student populations. Organization and Structure For the most part, existing organizations are proposed to take on new and different roles. Overseeing and serving as "steward" of this strategy is the Greater Phoenix High-Tech Manufacturing Workforce Advisory Board. In addition, to undertake the efforts in building the talent pipeline, a separate "clearinghouse" is proposed to handle the mentoring and job-shadowing types of support. Finally, formation of the High-Technology Manufacturing Workforce Forum will serve as a networking event and potential national signature, addressing issues of technology and talent in high-tech manufacturing and building a national signature for the region. xxiv Measures of Success and Accountability The following represent key measures and performance goals, with actual numbers or results tracked or monitored on an ongoing basis through the Greater Phoenix High-Tech Manufacturing Workforce Advisory Board: 1. Graduates of Associate's degree programs and receivers of certificates in high-tech manufacturing areas 2. Internships, mentors, shadow arrangements, etc. 3. Science and math courses taken by middle and high school students 4. Calls and outreach efforts 5. Market penetration of high-tech manufacturing brand in and outside the region 6. Industry consortia formed 7. Additional courses taken and degrees and certificates received in high-tech manufacturing. CONCLUSION The Greater Phoenix region is blessed with a legacy of strong semiconductor, electronics, instruments, telecommunications, and aerospace and defense firms that offer good, well-paying jobs. These legacy firms and their thousands of suppliers in the region are leaders in high-technology manufacturing. Essential to the global competitiveness of these firms is their ability to attract, expand, and retain the talent pool essential to their operations, including their technician workforce. This study reached more than 140 high-tech manufacturers in the region. Through extrapolation of projected hiring needs of interviewed firms to the universe of firms, the Battelle team calculated the need for nearly 5,000 additional technicians over the next 2 years--approximately 25 percent of which are replacements for those leaving the workforce because of retirement/attrition. Because of the increasingly sophisticated nature of these manufacturers' products and processes, it is expected that the number of technicians hired by high-technology manufacturers will only increase in the future. Recent plant expansions announced by Intel, the resurgence of hiring in the semiconductor industry, and firms considering expanding or locating in the Greater Phoenix region are all evidence of a need to further increase the technological quotient of the technician workforce of the future. Maricopa Community Colleges already play an important role in accounting for 99 percent of the certificates granted in recent years in high-tech manufacturing-related areas. However, they account for many fewer of those receiving Associate's degrees; here proprietary private schools dominate. Even so, there are major additional opportunities to expand and build a broader technician workforce in the region. The suggestions made in this report identify ways to accomplish that, laid out in five strategies and 11 actions (see Table E.5). xxv Section 1. Introduction CONTEXT This report, Competing with Talent: High-Technology Manufacturing's Future in Greater Phoenix, has been developed in the context of overarching global trends that are impacting the high-tech manufacturing workplace locally as well as throughout the United States. These trends include the following: 1. Declining U.S. share of world population and growth of science, engineering, and technical talent available globally 2. Increased pressure on energy, food, and natural resources with growing economies worldwide, underlining need to work smarter and toward sustainable manufacturing 3. Increasingly rapid development and deployment of new technologies, with accompanying shorter product life cycles, pointing toward U.S. role in manufacturing increasingly at the innovative "front end" 4. Advances in information, communication, and knowledge diffusion coupled with reduced transaction costs accelerated by the Internet and global connectivity, leading to increasing requirements for knowledge workers throughout the manufacturing organization A recent survey (the 2005 Skills Gap Report) by the National Association of Manufacturers, the Manufacturing Institute's Center for Workforce Success, and Deloitte Consulting LLP found the following: � Today's skill shortages are extremely broad and deep, cutting across industry sectors and impacting more than 80 percent of the companies surveyed. � Skill shortages are having a widespread impact on manufacturers' abilities to achieve production levels, increase productivity, and meet customer demands. � High-performance workforce requirements have significantly increased as a result of the skills gap shortage and the challenge of competing in a global economy, according to nearly 75 percent of survey respondents. 2005 Skills Gap Report--A Survey of the American Manufacturing Workforce, available at http://www.deloitte.com/dtt/cda/doc/content/us_mfg _Talent%2 0Man agement_120 50 5.pdf 5. Increasing integration of business functions worldwide, along with accompanying pressures for economies 6. The growing need to act globally, including interacting with diverse cultures, countries, and markets across political boundaries within and beyond multinational corporations. As they compete in the global marketplace, Greater Phoenix's high-technology manufacturers are very much subject to these trends. As businesses based in the United States, these firms are increasingly dependent on the knowledge and skills of their workers to maintain their advantage. It is in this context that the Maricopa County Community College District (MCCCD), in collaboration with and with the support of a range of organizations in the region, has undertaken this study. As part of its strategic planning efforts, the MCCCD system engaged Battelle's Technology Partnership Practice to develop a high-technology manufacturing strategy and ongoing capacity that enables MCCCD to determine and respond to the changing workforce needs of the Greater Phoenix area's high-tech manufacturing base as it competes in the global marketplace. 1 MCCCD entered into a unique partnership with the Salt River Project (SRP) to undertake this extensive study. Joining MCCCD and SRP in supporting this study are the Arizona Department of Commerce, Greater Phoenix Economic Council, Phoenix Workforce Connection (City of Phoenix Workforce Investment Board), Maricopa Workforce Connections (Maricopa County Workforce Investment Board), and the Arizona State University (ASU) Ira A. Fulton School of Engineering. Additionally, numerous industry groups and other organizations assisted with this effort, including the Arizona Association of Industries, American Electronics Association (AeA)--Arizona Council, Arizona Aerospace and Defense Industry Association, Arizona Manufacturing Network, Arizona Technology Council, Arizona Department of Education Career and Technical Education, and the Flinn Foundation. INDUSTRY OVERVIEW: EMPLOYMENT STRUCTURE AND CONCENTRATION Given the nature of the Greater Phoenix region and its employment base, the question may be asked, "Why focus on high-technology manufacturing?" Indeed, overall manufacturing accounts for only approximately 9 percent of the region's private sector employment.2 However, the importance of manufacturing to the region goes beyond the workforce share. The manufacturing sector � � Provides much-needed economic base employment and economic diversity to the region's economy; and Pays higher wages than total private sector wages on average and higher than the average wages in "service" jobs. Manufacturing firms within the high-tech arena pay even higher wages--typically because of increased skill requirements. Additionally, it is important for the region to link high-skilled manufacturing with high-skilled services to mutually reinforce the knowledge economy of the Greater Phoenix region. Important segments of hightech "services" (e.g., information technology [IT] and telecom development) can potentially complement the region's high-tech manufacturers and also pay very high wages--again, typically because of higher skill requirements. Table 1.1 provides detailed information regarding the importance of overall manufacturing, overall services, and key high-tech�relevant industry segments on the overall employment and wage structure for the state of Arizona and for Maricopa County. In every instance, these industry segments exceed overall average private sector wages, as well as overall average wages in service industries. While the detailed segments included in Table 1.1 may provide a glimpse into the high-tech context of the region, there is no formal definition of advanced or high-tech manufacturing--it is often referred to something that "you'll know it when you see it."3 The approach for this study focused on five specific key 2 Given Pinal County's small employment base, most publicly available sources used for general industry overview numbers include only Maricopa County data. For total private sector employment, manufacturing employment, and services industry employment, Pinal County accounts for approximately 2 percent of the Phoenix metropolitan statistical area total. However, to the extent practicable, the data collection process did attempt to include Pinal County firms. 3 No industry classification scheme allows for the specific identification of high-tech industries or firms to enable an extremely targeted approach. Indeed, even within the very specific high-tech segments identified as the basis for this project, many of these firms may not pass even an informal definition of high-tech. This point is especially important in the context of this study as many firms in these industries may not consider themselves to be "high-tech." 2 Table 1.1. Importance of Manufacturing, Services, and "High-Tech" to Greater Phoenix Region Industry Title Total Private Sector Manufacturing Computer and Electronic Products Electrical Equipment and Appliances Transportation Equipment Service-Providing Industries Software Publishers Telecommunications Professional and Technical Services 2004 Employment Arizona 1,980,818 176,718 44,240 2,109 31,343 1,575,009 3,525 18,436 109,539 Maricopa County 1,416,609 128,616 38,175 1,291 18,501 1,139,696 1,392 15,903 84,005 2004 Average Annual Wage Arizona $ 36,208 $ 52,723 $ 78,061 $ 40,634 $ 65,809 $ 34,596 $ 64,191 $ 51,313 $ 52,494 Maricopa County $ 38,728 $ 54,182 $ 80,187 $ 39,348 $ 61,165 $ 37,064 $ 71,134 $ 51,232 $ 54,325 Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages segments, as shown in Table 1.2.4 These five segments were chosen because they have historically employed large numbers of technician-level workers, are either significantly concentrated in the region or are part of an interwoven regional supply chain, and have been key markets for the services and students of the Maricopa Community Colleges and other regional education/training institutions. However, they also are a strong target for this effort because they have, and have the potential for, even stronger interconnections from a technological perspective--perhaps also sharing and co-developing the region's current workforce and future labor pool. Additionally, as shown in Table 1.2, two key industry segments of the region--aerospace and defense, and semiconductors and computer hardware--are both more than twice as concentrated in the region as they are nationally. Table 1.2. Regional Employment Structure for High-Tech Manufacturing Key High-Tech Segments Advanced Materials Aerospace and Defense Electronics and Instruments Information and Telecom Services Semiconductors and Computer Hardware 2004 Maricopa County Segment Employment 5,700 14,649 12,792 31,502 26,552 2004 Maricopa County Employment Concentration 0.39 2.11 1.05 0.91 3.00 2004 State of Arizona Employment Concentration* 0.44 2.73 0.93 0.84 2.48 *Employment Concentration (also known as a location quotient) is a measure of relative employment share comparing a specific region with, in this instance the U.S. Values equal to 1.0 indicate that the concentration of an industry's employment is equal to that of the U.S., with values above and below 1.0 indicating greater or lesser concentration, respectively. Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2004 Annual Averages and Battelle calculations 4 As conceived, the study was also going to examine the sustainable systems industry. The results of the project found that firms do not typically classify themselves as in the sustainable systems industry (only two firms considered themselves in the sustainable systems industry) and hence were not included in further analysis. Many firms do, however, practice sustainable systems approaches, are engaged in "green" or renewable resource technologies, or are involved in environmentally responsible manufacturing via international standards and requirements such as International Organization for Standardization (ISO) 14001 and the European Union's new Removal of Hazardous Substances (ROHS) directive. 3 PROJECT FOCUS AND METHODOLOGY This study has been organized around four principal tasks as shown in Figure 1.1: � Internal Program Assessment--including both a programmatic inventory and a strengths, weaknesses, opportunities, and threats (SWOT) analysis of MCCCD's high-tech manufacturing efforts Benchmarking and Competitive Positioning Analysis Industry Needs Assessment--primary data collection Strategic Framework--including Strategies, Actions, and Implementation Plan Development. � � � Figure 1.1. Project Work Plan Internal Internal Program Assessment Programmatic Inventory and SWOT Analysis Strategic Framework Industry Needs Assessment Methodology and Data Collection Benchmarking and Competitive Positioning Analysis � Analysis � Key Issues � Strategies � Actions � Priorities � Time Frame � Resources � First Year Work Plan � Relationships & Connectivity � Replicable Data Base Communications to Regional Stakeholders To provide a basis for understanding MCCCD's offerings and activities, the Battelle team interviewed and reviewed information from directors and faculty involved in nearly 40 manufacturing-related programs across five of the 10 Maricopa Community Colleges as well as the Skills Centers and Maricopa Advanced Technology Education Center (MATEC). This inventory also covered both producer and feeder programs in community colleges, K-12, and universities, including the various engineering-related programs at both the main campus of ASU and ASU Polytechnic. Included in the quantitative review were qualitative sources of students, characteristics, and placements, as well as an overview of the curricula and competencies addressed. The programmatic awards data collected for this effort resulted in a more quantitative assessment presented in Section 2, "Maricopa Community Colleges' High-Tech Manufacturing Programs: Inventory and Issues" and a more qualitative assessment of the strengths, weaknesses, opportunities, and threats of the existing programs relative to industry's current and future needs are presented in the Section 3, "Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of MCCCD's Activities in Addressing High-Tech Manufacturing Workforce Needs." To better inform and consider the efforts of other leading community college nationally in hightechnology manufacturing areas, the Battelle team benchmarked MCCCD against eight centers that have been created across the nation to address technical workforce needs. The eight cases selected for comparability with the interests of this study included educational institutions' efforts focused on nextgeneration manufacturing. To select the most useful cases, Battelle worked with the stakeholder steering 4 committee to develop criteria for selection and a candidate list from which to select six benchmark examples. Because no one center captured all the issues and industries within the focus of this study, a range of centers with different technology foci was selected, with emphasis on including a sample of best practices from western states and in states with manufacturing bases similar to the Greater Phoenix region. This analysis identified success factors, elements, and best practices for next-generation manufacturing. It also helped to identify relevant national and international trends in markets, technologies, skill requirements, and other issues affecting the future talent pool for high-technology manufacturing. The outcome of this effort is presented in Section 4, "Benchmarking and Competitive Positioning Analysis." Four complementary efforts were undertaken to develop a detailed picture of current and emerging industry needs among high-tech manufacturing employers in the Greater Phoenix region, including validating the data through a set of industry and stakeholder focus groups. The information collected has been used to better inform MCCCD of its provision of technical and other talent for the high-technology manufacturing sector of the Greater Phoenix area. Information was collected from a sample of firms in each of the five industry groups: � � � � � Advanced materials Aerospace and defense Electronics and instruments Information and telecom services5 Semiconductors and computer hardware. Data were collected by the following means: 1. An Internet-based survey, open to all the region's advanced and high-tech manufacturers, was used to obtain a better understanding of the quantities and types of technicians employed, as well as overall operational and technological trends affecting these firms and their workplaces. 2. Company interviews were conducted with a cross section of 107 firms from the above industries. For each participating firm, managers responsible for each of three different functions within the business--strategy, operations, and human resources--were interviewed. The Battelle project team conducted the company interviews from late May through September 2005. 3. Firms interviewed were also asked to complete a more detailed skills assessment questionnaire, which articulates the disciplinary knowledge and skill sets required for each of up to 10 types of technician positions. 4. Finally, selected firms and stakeholders were invited to participate in 2-hour focus groups, organized by industry sectors. Four groups were held in early November, during which time the firms validated findings from the other sources and gave further dimension to their workforce needs as well as potential action items to address those needs going forward. Given the project's overarching focus on high-tech manufacturing and the fact that the information and telecom services segment is dominated by a large number of smaller software firms (many with less than 10 employees), the project approach to this segment was somewhat modified. To the extent practicable, information was primarily sought from the region's key firms in the information and telecom services segment with an additional special interest in those software firms providing manufacturing-related software or IT services (e.g., MRP systems, supply chain systems, etc.). 5 5 Company-level information has been aggregated to develop a better overall picture of current and emerging needs. The resulting analysis includes an assessment of the skills, employer training and education needs, and timing and priorities of demand. Additionally, it identifies key issues that need to be addressed for the retention and growth of high-tech manufacturing in the region. The product of this effort is an analysis presented in Section 5, "The Greater Phoenix Region's High-Tech Manufacturing Technician-Level Workforce: Current Needs and Future Requirements." The information collected through these various methods has been used to develop a strategic framework, which lays out a vision and mission for MCCCD in collaboration with industry, other education and economic development groups, government, and the community at large to undertake. Five major strategies are identified, each with specific action items, resources, and feasible time frames in order to achieve the vision put forward in the plan. This project will culminate in the development of a strategic framework for meeting Greater Phoenix's current and future high-tech workforce needs, with a particular focus on high-tech manufacturing careers, occupations, and demands. This strategic framework involves a set of interconnected strategies and actions, built on the progress to date that can drive a private and public partnership. The product of this project effort is presented in Section 6, "Strategic Plan." 6 Section 2. Maricopa Community Colleges' High-Tech Manufacturing Programs: Inventory and Issues OVERVIEW To obtain a better overall understanding of the Maricopa Community Colleges' current position and a better overview of how technical schools, community colleges, and others in the Greater Phoenix region are addressing high-technology manufacturers' demand and supply issues, Battelle identified and reviewed current programs and activities. This data analysis and assessment extended beyond MCCCD to other education institutions including DeVry University, ITT Technical Institute, High-Tech Institute (HTI), and ASU. It is important to note that this effort is not intended to be an evaluation of individual programs, but is designed to provide an overall base of information about the current set of manufacturing-related certificates and Associate's degree programs available in the region. Discussions with each institution included the following: � Overview Information, including program structure, recent enrollment, and completion activity, including further educational activities and transfers to ASU and other 4-year institutions, to the extent known. Curriculum and Program Content, including the strengths and limitations of the overall existing curricula, capabilities, capacities, equipment, or other infrastructure; accreditation; processes for modification; faculty profiles; and future plans. Student Profile, including age and other demographics, geographic and educational and skills background, evening versus day profiles, and industry and employment experience, as applicable. Industry Context and Demand, including leading companies engaged and/or hiring recent graduates, marketing and outreach to industry, and industry advisory boards and other methods used to get industry input on changing workplace needs. � � � Battelle staff interviewed program directors and related faculty involved in high-tech manufacturing areas from the five (out of the 10) colleges in the Maricopa system identified by MCCCD as having significant manufacturing-related efforts. These programs included certificates and Associate's degrees in a variety of high-tech manufacturing and manufacturing-related technical/technician fields. These interviews were designed to gather information and to explore issues and opportunities related to the current and future manufacturing workplace in which MCCCD graduates are and will be engaged. As part of this analysis, ASU engineering administrators, department chairs, and associates at both the main campus in Tempe as well as at ASU Polytechnic (formerly known as "ASU East") in Mesa also were interviewed. Also reviewed was the National Science Foundation (NSF)-funded Automated Manufacturing Program (also known as Factory Wise), now in its pilot phase at the Maricopa Skill Center, a 600-hour course (potentially carrying 15 to 20 college credits transferable to any MCCCD college) targeted to disadvantaged workers seeking entry-level positions in automated manufacturing operations. 7 In addition, to obtain a more complete picture of the environment in which MCCCD programs are positioned, further information was collected through interviews and other methods from East Valley Institute of Technology (EVIT), as well as the DeVry University, ITT Technical Institute, and the HTI campuses in the region. Further "on-the-ground" insights also were developed through subsequent industry interviews where company managers have had experience with various manufacturing programs and recruitment. Program directors and related faculty were interviewed and information from institutional, departmental, and U.S. Department of Education Web sites was examined from the programs shown in Table 2.1. Table 2.1. Institutions, Programs, and Departments Chandler-Gilbert � Aircraft Construction & Maintenance Technology (2) � Automated Manufacturing Technology � Aviation Electronics Maintenance Technology � Composite Technology � Engineering & Computer Science GateWay � Electrical Technology/Technician � Facilities Systems Technology � Manufacturing Productivity Technology � Water Resources, Occupational Safety & Health Glendale � Electrical Engineering � Electronics Technology � Engineering Science Mesa � CAD, Microcircuit Mask Design, Mechanical Drafting Tech � Electro-Mechanical Automation Technology � Electronics, Electronic Engineering Technology � Manufacturing Automation, CNC � Manufacturing Engineering Technology South Mountain � Telecom Technology Maricopa Skill Center � Automated Manufacturing Program (NSF) (in pilot phase) Maricopa Advanced Technology Education Center (MATEC) CAD = computer-aided design/drafting CNC = computer numerical control DeVry University � Electronics & Computer Technology ITT Technical Institute � Computer & Electronics Engineering Technology � Computer Drafting & Design High-Tech Institute (HTI) � Electronics Technology � CAD/Drafting Technology East Valley Institute of Technology (EVIT) � Electronics Technology � Industrial and Commercial Technologies ASU Main (Tempe)--Fulton School of Engineering � Bioengineering � Chemical & Materials Engineering � Computer Science & Engineering � Electrical Engineering � Industrial Engineering � Mechanical & Aerospace Engineering � Academic Affairs � Center for Engineering Diversity & Retention ASU Polytechnic--College of Technology & Applied Sciences � Aeronautical Management Technology � Division of Computing Studies � Electronics & Computer Engineering Technology � Engineering � Technology Management � Mechanical/Manufacturing Engineering Technology OVERVIEW OF MCCCD'S HIGH-TECH MANUFACTURING OFFERINGS Maricopa Community College Based on discussions with Maricopa Community Colleges' personnel, 27 programs were identified that offer "advanced" or "high-tech" manufacturing curricula (Table 2.2). These include programs that produce workers for the aerospace, defense, semiconductor, and electronics industries, and programs that teach general manufacturing skills. Because of the unique nature of some of Arizona's industries, a 8 number of programs also are included within the overall analysis that typically may be considered outside of the high-tech manufacturing realm. These include the following: 1. Computer systems and networking skills required by many of the semiconductor, advanced electronics, and telecommunications firms. 2. Advanced facility systems management and operational support capabilities to operate "clean room" manufacturing settings, including functions such as environmental and occupational safety, high-end HVAC systems, water, and wastewater treatment. 3. "Production"-type skills such as welding and machining required by the aerospace industry and its supply chain (including aircraft structural maintenance and rebuilding companies). Table 2.2. Key Maricopa Community Colleges High-Tech Manufacturing Programs Program Name Chandler-Gilbert Community College Aircraft Construction Technology Aircraft Maintenance Technology Automated Manufacturing Systems Aviation Electronics Maintenance Technology Avionics Technology Composite Technology Engineering & Computer Science X X X X 64-67 89-92 60.5-62.5 66-73 Certificate(s) # Credits Associate # Credits X 38.5-40.5 X 48 X 34 Primarily Articulation, Based On First 2 Years of Bachelor's Program X X X X X X 70 70 72 60-63 64-75 GateWay Community College Aerospace Manufacturing Technology (on hold/not running) Electrical Technology Air Conditioning, Refrigeration & Facilities Technology Manufacturing Productivity Occupational, Safety and Health Technology Water, Wastewater & Industrial Treatment Technologies X X X(8) X X 43 19-22 15 Glendale Community College Computer-Aided Design Technology (new program Fall '05) Electronics Manufacturing Technology Engineering Science X 68-69 X 67 Primarily Articulation, Based On First 2 Years of Bachelor's Program X(3) X X X X 43 36 33 33 27 X X X X X X X X X 66-67 68-74 78-84 65-69 68-71 71 68-71 63 64-68 Mesa Community College Electro/Mechanical Drafting Electromechanical Automation Electronic Engineering Technology Electronics Technology Manufacturing Automation Manufacturing CNC Manufacturing Engineering Technology Manufacturing Management Microcircuit Mask Design X X (2) X 36 17-21 15-20 South Mountain Telecommunications Technology Maricopa Skill Center Automated Manufacturing Program (in pilot phase) While this list is not exhaustive of all programs within MCCCD that provide training to the region's hightech manufacturers, it does provide a broad context upon which to base further study. 9 These programs were then classified into the appropriate Classification of Instructional Program Codes (CIP Codes) based upon a program-CIP Code mapping matrix provided by Maricopa Community Colleges.6 Additionally, other manufacturing-relevant technician CIP Codes were included in the analysis to both cover the broadest possible definition and to improve comparability to other regional institutions. Maricopa Advanced Technology Education Center Beyond the distinct certificate- and degree-granting programs within the MCCCD system, the District is also home to a unique, high-tech manufacturing�related educational asset--the MATEC. MATEC, launched in 1997, is one of 18 NSF-sponsored Advanced Technology Education (ATE) Centers. Each of these Centers is housed within a community college infrastructure to focus on technician-level training; is strongly connected, directed, and funded by industry champions; focuses on a specific technological domain of regional, if not national, importance; and is designed to be a clearinghouse of "best practices" on meeting the educational and training needs of their focus technology or industry.7 The focus of MATEC was developed around the educational and training needs of the semiconductor industry and is built upon significant relationships with the Semiconductor Industry Association, International SEMATECH, and individual industry members such as Intel, Motorola, AMD, Texas Instruments, National Semiconductor, and other industry leaders. MATEC's overarching purpose is to develop and provide the required curriculum and professional development for its educational partners to meet the needs of local semiconductor manufacturers. Currently, MATEC has more than 130 U.S. and international educational partners. As MATEC and the semiconductor industry have both matured, additional complementary efforts have been developed that broaden the core curriculum efforts to be more inclusive of automated manufacturing and electronics environments in general, including those that extend beyond the semiconductor industry. From the perspective of the Greater Phoenix region, while MATEC does not directly train the regional workforce, it does provide a unique resource to assist MCCCD and other regional institutions in meeting the needs of regional high-tech manufacturers. Discussions with various MCCCD faculty members indicate the value of the MATEC effort to the region, especially given the employment size of the region's large semiconductor facilities. However, some concern was expressed in that, by their nature, the MATEC efforts are geared toward large-scale semiconductor operations, often meaning that the curriculum was not 100 percent applicable to the needs of smaller, contract semiconductor operations or the broader integrated circuit/electronics industry in the region. AWARD AND GRADUATION TRENDS In the context of the Greater Phoenix workforce, the Maricopa Community Colleges are positioned to serve and advance the technology-talent pipeline through multiple avenues. They provide the following: � An affordable point of access for high school graduates not going directly to 4-year institutions, including further preparation for additional post-secondary education. In this arena, 2-year 6 Analysis of award data throughout this section is based upon the U.S. Department of Education's CIP Code classification scheme. The complete list of CIP Codes, and their mapping into Technician Educational Areas used in this analysis, is included in Appendix A. 7 In this context, Dr. Michael Lesiecki, Executive Director of MATEC, assisted the Battelle team in identifying other ATE centers around the country that could provide examples of "best practices" in serving firms within the key industry segments of this study. The results of this effort are contained in Section 4 "Benchmarking and Competitive Positioning Analysis." 10 engineering science degree activity, although not always culminating in an Associate in Applied Sciences (AAS) degree, is an important feeder into the ASU and other 4-year engineering institutions. � Retooling for career changers and advancers, including adults returning to the workforce or adding skills for advancement. In this area, certificates are more often sought in the marketplace than full degrees. Remedial education and workforce development, either through certificate and noncredit training through two skills centers or through individual courses, certificates, and eventually degrees. � While not a perfect indicator of educational supply, graduation data do provide one quantifiable and key indicator of "talent generation" for a manufacturing- and technology-based workplace that increasingly requires knowledge and competencies beyond the high school level. For this analysis, a dataset of regional institutions was developed using data from the U.S. Department of Education's National Center for Educational Statistics for each school year from 1999 to 2004 (the most recent 6-year period available). Data include information on institutions, program type (based on CIP Codes), award-level type (certificate or Associate's degree), and numbers of awardees. Maricopa Community Colleges District MCCCD conferred 4,105 high-tech manufacturing�related awards (both certificate and Associate's degrees) between 1999 and 2004. Of these awards, 1,905 are short-term certificates (less than 1 year), 1,250 are longer-term certificates (between 1 and 2 years), and 950 are Associate's degrees (Figure 2.1). Figure 2.1. Distribution of Maricopa Community Colleges' High-Tech Manufacturing Certificates and Associate's Degrees, 1999�2004 1000 Associate's Degree 900 800 700 Number of Awards 600 500 400 300 200 100 0 1999 2000 2001 Year 2002 2003 2004 Certificate: At least 1 but less-than-2 academic years Certificate: Less-than-1 academic year Figure 2.1 also shows that, during the economic downturn, overall programmatic awards increased; but, they fell off slightly in 2004--likely because of the overall improved economic prospects in the region-- and hence workers and students are more engaged in their existing jobs than in furthering their education. Figure 2.2 shows the distribution of total awards for 1999 to 2004 by each of the MCCCD institutions. 11 Figure 2.2. Distribution of Total Awards (1999�2004) by MCCCD Institution 1,200 1,000 Total Number of Awards, 1999-2004 Associate's Degree Certificate: At least 1 but less-than-2 academic years 800 Certificate: Less-than-1 academic year 600 400 200 0 ay sa Ph oe nix Ce nte r ala do da le ey le Sc ott sd a So uth t an dle r/G ilb er Ga teW Me Mo u Gl en Va ll Mo u nta in nta i n Pa ra dis e Sk ill lla Ma ric op a Es tre Ch MCCD Institution This distribution shows that a significant share of the high-tech manufacturing�related awards is coming from the certificate programs of the Maricopa Skill Center (accounting for 27 percent of all awards and 35 percent of all MCCCD certificates). Additionally, it shows that Chandler-Gilbert and GateWay are also significant providers of certificates, accounting for 22 percent and 18 percent of all MCCCD certificates, respectively. Figure 2.2 also shows that three MCCCD institutions--Mesa, Glendale, and GateWay--are the most significant providers of high-tech manufacturing�related Associate's degrees, each accounting for more than 22 percent of the Associate's degrees and together accounting for more than 70 percent of the MCCCD high-tech manufacturing�related Associate's degrees. Certificates and Degrees Awarded by Technician Educational Areas and Fields To better understand MCCCD's connections to high-tech manufacturing and the role the individual institutions play in meeting regional demand requires further analysis. To provide structure to this analysis, the high-tech manufacturing�related CIP Codes were grouped into six technician educational areas--that roughly correspond to the technician areas developed and analyzed further in this study and group together the key technician training areas from which high-tech manufacturers would draw. It is important to note that most, if not all, of these technician educational areas provide certificates and Associate's degrees to non�high-tech manufacturers and other nonmanufacturing industries, in addition to the region's high-tech manufacturers. For example, welding training (within the production technician area) can be used within the aerospace supply chain or in the region's construction industry; similarly, computer systems networking/telecommunications can be used within businesses of all types, not just in the telecommunications industry. The six areas and the distribution of overall awards in each are shown in Figure 2.3.8 8 See Appendix A for program details for each of the six technician educational areas. Ri oS 12 Figure 2.3. Distribution of Total MCCCD High-Tech Manufacturing�Related Awards (1999�2004), by Technician Educational Area Installation, Maintenance, & Systems Technicians 8.1% Aircraft/Avionics Technicians 8.6% Networking/Telecom Technicians 37.7% Engineering Technicians 17.1% Supply Chain Technicians 0.2% Production Technicians 28.2% Two technician educational areas account for the majority of awards--networking/telecom technicians and production technicians. This is not surprising as these two areas are common or crosscut all types of manufacturing and, indeed, throughout many other industries as well. Engineering technicians, the technician educational area most directly aligned with high-tech manufacturing, account for slightly more than 17 percent of MCCCD's total high-tech manufacturing�related awards. Table 2.3 provides additional details regarding the distribution of certificates and degrees awarded within these technician educational areas from 1999 to 2004. It shows that, within the MCCCD system, engineering technician programs are primarily delivered via Associate's degrees, while the remaining programs are currently more aligned with short- or longer-term certificates. Table 2.3. Distribution of Total Awards, 1999�2004, by Technician Educational Area Technician Educational Area Networking/Telecom Technicians Engineering Technicians Installation/Maintenance/Systems Technicians Aircraft/Avionics Technicians Production Technicians Supply Chain Technicians Short -Term Certificates 72% 17% 47% 0% 43% 56% Longer-Term Certificates 5% 15% 22% 100% 55% 0% Associate's Degrees 22% 68% 31% 0% 2% 44% Source: National Center for Educational Statistics, IPEDS Survey, School Years: 1999�2004, and Battelle calculations. Figure 2.4 examines these same technician educational areas, but details their distribution by MCCCD institution. As shown in Figure 2.4, the Maricopa Skill Center is responsible for the vast majority of production technicians (e.g., welding, machining), which, as detailed in Table 2.3, is overwhelmingly geared toward certificate-based instruction. Additionally, Figure 2.4 shows that three MCCCD institutions--Mesa, GateWay, and Glendale--are responsible for the majority of engineering technician programming. This reiterates the results from Figure 2.2, showing these same three colleges as the key Associate's degree�awarding institutions within MCCCD. 13 Figure 2.4. Distribution of Total MCCCD High-Tech Manufacturing-Related Awards (1999�2004), by Technician Educational Area and MCCCD Institution 1,200 Supply Chain Technicians Installation/Maintenance/Systems Technicians Aircraft/Avionics Technicians Engineering Technicians Production Technicians Networking/Telecom Technicians 1,000 Total Number of Awards, 1999-2004 800 600 400 200 0 Me sa Pa ra dis eV all ey Gl en Ma da le ric op aS kil lC en ter Ga teW ay nix o ler /G ilb er t da le Sc ott s Mo un ta i n Mo un tai n Ph oe ala d Ri oS Ch an d tre lla Es MCCD Institution To provide a more complete understanding of the engineering technician educational area, Figure 2.5 details programs (defined by CIP Codes) included within the engineering technician area. Figure 2.5. Program Detail of Engineering Technician Certificates and Associate's Degrees (1999�2004) Other Engineering Technologies 1.6% Drafting/Design Engineering Technology 10.9% Computer Engineering Technology 11.3% Electrical/Electronic & Communications Engineering Technology 33.3% Industrial/Manufacturing Engineering Technology 18.6% Electromechanical Engineering Technology 24.3% MCCCD's Role in the Region Overall, graduation levels for high-tech manufacturing�related Associate's degrees are relatively modest in the region, compared with the large enrollment of students throughout the Maricopa Community Colleges. Other educational institutions in the region, including DeVry University, HTI, and ITT So u th 14 Technical Institute, also offer high-tech manufacturing Associate's degree programs. In fact, during 1999 to 2004, the Maricopa Community Colleges accounted for only 23 percent of the high-tech manufacturing�related Associate's degrees awarded in the Greater Phoenix region-- in 2004 MCCCD's share grew to 28 percent (Figure 2.6). Figure 2.6. High-Tech Manufacturing Associate's Degrees Awarded by Regional Institutions 400 DeVry University - AZ 350 High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District Number of Associate's Degrees Awarded 300 250 200 150 100 50 0 1999 2000 2001 Year 2002 2003 2004 Figure 2.6 shows that over the 6-year period the changing dynamics of the region have been reflected in the total number of Associate's degrees awarded by the regional providers, as seen in the following: 1. Associate's degrees awarded by DeVry University have unmistakably declined. This is likely a combined result of the declining demand for its programs (which are concentrated in the electronics field) and of the institutional emphasis being placed on Bachelor's degrees. 2. HTI, focused primarily in the computer-enabled engineering and design arena, also demonstrated a marked decline in total Associate's degrees awarded during 1999 to 2002. However, recent growth is due to resurgence in computer engineering degrees and a newer design engineering program. This growth has made HTI the largest provider of high-tech manufacturing�related Associate's degrees in the region. 3. The ITT Technical Institute also has seen a recent (2003 and 2004) increase because of increased demand for its Associate's degree programs in computer-aided design (CAD). 4. Within the MCCCD system, the fairly consistent growth has been driven by a steady increase in the number of Associate's degrees in systems networking and telecommunications. However, as noted above, while Associate's degrees are a critical component of the educational portfolio for high-tech manufacturing, certificate programs also play an integral role--especially with regard to retraining and skill-enhancing efforts. Figure 2.7 shows overall awards by the four regional provider systems. The overall significance of the MCCCD system in meeting the educational needs of the region's manufacturing base and technician-level workforce is quite apparent. The Maricopa Community Colleges account for 4,105 total awards, 56 percent of all such awards in the region--more than the other three provider systems combined. From a certificate basis, the impact of MCCCD is even more 15 staggering--the MCCCD institutions delivered 99 percent of all certificates awarded in these fields in the region. As stated by a number of individuals, the MCCCD system is the primary provider from which to "get a certificate" to upgrade one's skills. Figure 2.7. Total Awards, by Provider, 1999�2004 4,500 Total Number of Certificates and Associate's Degrees, 1999-2004 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 DeVry University - AZ High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District Associate's Degree Certificate: At least 1 but less-than-2 academic years Certificate: Less-than-1 academic year Institutional Providers Figure 2.8 shows a potential concern regarding Maricopa Community Colleges' high-tech emphasis. As also noted above, the engineering technician educational area is the most directly connected with "hightech" and has the strongest connection to Associate's degrees. In this specific area, MCCCD lags in total awards behind both the HTI and DeVry University. Figure 2.8. Total Awards, by Technician Educational Area and Provider, 1999�2004 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 DeVry University - AZ High Tech Institute ITT Technical Institute - Phoenix Metro Maricopa Community Colleges District Supply Chain Technicians Installation/Maintenance/Systems Technicians Aircraft/Avionics Technicians Engineering Technicians Production Technicians Networking/Telecom Technicians Number of Certificates and Associate's Degrees, 1999-2004 Regional Institution 16 To put this issue into perspective--high-tech manufacturing�related educational awards accounted for 4.1 percent of all certificates and Associate's degrees from MCCCD and 4.0 percent of all MCCCD Associate's degrees in 2004. Nationally, these same 2004 shares related to high-tech manufacturing were 6.3 percent of certificates and Associate's degrees and 5.0 percent of all Associate's degrees. This amounts to a relative concentration metric of high-tech manufacturing awards in the MCCCD system of 0.65 for all certificates and Associate's degrees, increasing to 0.79 for Associate's degrees alone.9 However, including the other regional providers, these concentration metrics increase to 1.10 for hightech manufacturing�related certificates and Associate's degrees and up to 2.36 for Associate's degrees alone. What makes these numbers significant and extremely important is the size and high concentration of high-tech manufacturing in the Greater Phoenix region. As shown previously in Table 1.2, both aerospace and defense (concentration metric = 2.11) and semiconductors and computer hardware (concentration metric = 3.00) are significantly more concentrated in the region than they are nationally. Ultimately, this demonstrates that the MCCCD system is lagging in the output of qualified workers for the region's and the state's high-tech manufacturing industries--leaving market share, especially within Associate's degree�focused programs, to other regional institutions to capture. OTHER TECHNICAL SCHOOLS AND INSTITUTIONS' INITIATIVES IN HIGH-TECH MANUFACTURING The following profiles further characterize these other educational institutions in Greater Phoenix that provide programs related to high-tech manufacturing and technology for undergraduate credit, including at the Associate's degree level. Additionally, the EVIT is profiled. DeVry University--Arizona DeVry University is a national proprietary undergraduate and graduate institution with regional facilities in Phoenix, Mesa, and Scottsdale. Enrollment in the Phoenix metropolitan area is primarily undergraduate, representing more than 85 percent of a total matriculated enrollment of about 1,900. DeVry's national name brand and profile also provide an advantage in dealing on a consistent basis with national or international firms with multiple locations across the United States. As reflected in the industry interviews, DeVry has established a relatively high profile in Phoenix as a result of a proactive, coordinated institutional outreach effort to industry that creates opportunities for developing partnerships with key employers. At the undergraduate level, DeVry is known for its electrical/electronics engineering technology programs and a host of more standard IT-focused computer technology programs. New biomedical engineering and bioinformatics programs have been added in the past 2 years. Full-time tuition is $12,000 (Fall 2005). ITT Technical Institute--Phoenix Metro Like DeVry, ITT Technical Institute is a national proprietary school with a focus on technology career education. Its Phoenix campus is located in Tempe. Manufacturing-related Associate's degrees are offered in computer network systems, software applications and programming, computer and electronics engineering technology, and CADD. Tuition is $268 to $360 per credit hour (as of Fall 2004) or $4,000 to $5,000 for a full-course load, depending on the program. 9 If the MCCCD system and U.S. shares were equal, the concentration metric would be 1.00. 17 High-Tech Institute--Phoenix Headquartered in Phoenix, HTI is a proprietary institution. The Institute operates 17 schools in 12 states and offers Associate's and Bachelor's Degrees and certificates. HTI of Phoenix was formed in June 1982 as the successor to the Electronic Institute of Arizona, which itself was founded in 1965. In addition to programs in allied health fields and criminal justice, HTI is a significant provider in computer-related fields, including CADD, computer networking and security, electronics design, and graphics/animation. Degrees and diplomas also are offered in Information Technology and Allied Health. As do the other proprietary technical institutions, HTI emphasizes "hands-on learning" and faster entry into employment. Tuition and fees range from $9,000 to $13,000 per year, depending on the program. East Valley Institute of Technology More of a collaborator and feeder for MCCCD, EVIT is Arizona's first Joint Technical Education District--one of 10 in the state and the only such district in the Phoenix area. Records show that 64 percent of EVIT's students proceed to higher education upon graduation. EVIT provides "hands-on" high school career and technical education and more limited adult programs in 35 program areas at a 70+-acre campus in the City of Mesa. Industry interviews have indicated that EVIT has a fairly high and positive profile among manufacturers, particularly in the precision machining area. Students are dually enrolled with their host districts and spend half-days at EVIT on applied learning curricula and half-days at their home schools. Students competitively apply for admission to EVIT, designating their program of interest. While more than 20 of the programs have waiting lists, these waiting lists are generally not found in manufacturing�related concentrations. Students come from 10 host districts, the largest of which-- Mesa--accounts for 1,500 of the approximately 3,000 students currently enrolled. While EVIT has experienced significant overall growth in the last 5 years, increasing enrollment from 900 to 3,000, manufacturing-related programs generally have not been growing. Publicly funded with a voter-approved property tax on a valuation base of $20 billion, EVIT has no debt. Through articulation agreements with Mesa and other institutions, students can complete and transfer coursework equivalent to 15 college credits prior to graduation. Proximity to MCCCD campuses, particularly Mesa, as well as some sharing of faculty in the manufacturing-related programs with MCCCD, positions EVIT as a significant feeder to MCCCD programs and a vehicle for industry to promote increased career awareness at the high school level on a targeted basis. Manufacturing�related programs, generally certified to applicable national standards, include aviation maintenance, electronics and robotics technologies, precision manufacturing (National Institute for Metalworking Skills, Inc.{NIMS] certified), technical drawing and CADD, as well as energy technologies, including fuel cells (as part of the automotive technologies program division). A number of courses within these programs, especially in electronics and machining, are taught by faculty shared with MCCCD. EVIT programs have active industrial advisory boards that meet as frequently as monthly, and industry partnerships have led to such established courses as an industrial cooperative course for seniors with Honeywell that includes a summer training component. 18 CONCLUSION The preceding inventory reflects significant challenges and opportunities for the set of institutions that comprise the MCCCD. Given their collective size and breadth, the 10 MCCCD institutions come into contact with a significant part of Greater Phoenix's current and future workforce--Maricopa's 277,000 student enrollment is equivalent to nearly 15 percent of the region's current labor force of 1.9 million. Nevertheless, when viewed in proportion to overall enrollments, manufacturing industry demands, and competing, more focused proprietary institutions, MCCCD institutions account for a modest share of regional high-tech manufacturing Associate's degrees. Over the 6-year period of 1999 to 2004, the Maricopa Community Colleges accounted for only 23 percent of high-tech manufacturing�related Associate's degrees in the Greater Phoenix region--rising to 28 percent of the Associate's degrees in 2004. In contrast, MCCCD accounts for 99 percent of high-tech manufacturing�related certificate programs, whose enrollments have steadily increased over the past few years, demonstrating increased student interest and possible industry interest as well. Private, proprietary institutions in the region have generally focused their programs and enrollments on traditional regional industry strengths and interest in IT, given the concentration of computer and IT firms, and the need of all industries for more "information" workers. Given the strong regional industry specializations in such industries as semiconductors, electronics, aerospace, and defense, both at the OEM and supplier levels, there does appear to be a need to increase partnerships with and respond to the needs of these industries for future workers. High-tech manufacturing represents an opportunity area that has not received sufficient attention and focus at MCCCD or other educational institutions in the Greater Phoenix region. To obtain a better idea of these industry demands, the following sections of this report include a SWOT analysis of MCCCD's current high-tech manufacturing efforts, as well as the results of in-depth industry interviews to determine their needs and priorities. 19 20 Section 3. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis of MCCCD's Activities in Addressing High-Tech Manufacturing Workforce Needs In the course of its strategic planning, Maricopa Community Colleges need to assess, as would a business, their relative position in the marketplaces they serve. Strengths and weaknesses are those current factors that are within the internal control of the Colleges. Externally, both opportunities and threats are factors that impact the current and future success of the Colleges. While not directly controlled by the organization, these factors impact MCCCD's operating environment. A well-conceived strategy develops actions that seek to leverage the strengths while minimizing the weaknesses of the MCCCD institutions. At the same time, the strategy should also respond and take advantage of significant opportunities, while addressing threats. The following analysis is written from the perspective of MCCCD and in later sections of this report will be supplemented by the perspective of industry as obtained through extensive interviews and survey analysis. This section is drawn from interviews with academic administrators, department chairs, and faculty coordinators at five MCCCD schools with manufacturing�related programs and the Maricopa Skill Center operated by MCCCD, as well as discussions with department leaders at Arizona State University (both the Main and Polytechnic campuses). This information was supplemented with a review of available information on various Web sites and reports. It should be acknowledged that some statements made by interviewees may represent perceptions. To the extent possible, Battelle has eliminated statements that are not factual. However, some perceptions that affect the way groups, institutions, and organizations approach issues need to be acknowledged in this analysis. STRENGTHS Strengths are those factors that are internal and are advantageous to the MCCCD institutions. The strengths discussed below are drawn from the insights and experiences of the programs directors and were generally consistent with the perceptions of external academic stakeholders. � The Maricopa Community Colleges have responded to current and emerging trends at the individual college level. The diversity of the programs of the MCCCD reflects the response of individual colleges to the prior and current needs of area manufacturing firms and industries. In several cases, an individual faculty member or academic unit with an idea and demonstrated demand for a new program has been successful at establishing and building that program. There is a greater reliance on adjunct faculty for many of the manufacturing programs--this can be an advantage for connecting the curriculum with the needs of industry. In a number of programs, the significant majority of faculty was part-time and adjunct. While this can present management and consistency issues different from those related to full-time faculty, it can also be viewed as a strength, since these adjunct faculty are generally working in the target industry and can more readily provide their students real-world examples, current and best practices, and linka

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Home Competing with talent: high-technology manufacturing's future in greater Phoenix

Competing with talent: high-technology manufacturing's future in greater Phoenix

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