TWEP Needs Evalution - KCI New Terminal Project

OCTOBER 2019

Terminal Workforce Enhancement Programs

Needs Evaluation for the KCI New Terminal & Parking Project 1 | Prepared by Amazing Traditions, LLC

Prepared By

Table of contents 3

Executive Summary

4

Background of the KCI New Terminal & Parking Project

5 Why is the TWEP Important?

6 Identification of Social and Cultural Performance Measures 10

Identification of all Affected Individuals and Groups

14

Identification of Social and Cultural Resources and Profiles

17

Social and Cultural Impacts

18

Input from Community

24

Barriers to Expanding Employment

25

TWEP- Terminal Workforce Enhancement Programs Overview

26

Meeting the Challenge Through TWEP

26

Forecasted Workforce Needs

28

Next Steps for the Terminal Workforce Programs

29

Acknowledgments

30

References

2 | Prepared by Amazing Traditions, LLC

EXECUTIVE SUMMARY A Needs Evaluation was conducted for Edgemoor Infrastructure & Real Estate (Edgemoor) and Clark | Weitz | Clarkson (CWC) to understand the potential need for a portion of the Terminal Workforce Enhancement Programs (TWEP). The City of Kansas City, Missouri will present this report to the Federal Aviation Administration in support of programs needed to build a sustainable workforce for the construction of the KCI New Terminal & Parking Project. There will be a continued evaluation on a quarterly basis to monitor the ongoing need for these programs. While there are multiple TWEP programs, the focus of this evaluation is on the need for workforce training, access to licensed child care with extended hours, and free/ subsidized transportation to and from the airport.

When considering the need for the TWEP, several socio-economic factors were evaluated along with input from the community through a series of public meetings. This includes multiple public meetings held throughout 5 counties in Missouri and 3 counties in Kansas, and collecting community and survey input throughout each of these counties. It’s important to not only evaluate the need, but to understand where the greatest needs exist for the most efficient use of resources and achieving the greatest outcomes.

As employers struggle to find skilled workers, innovative solutions become even more critical to meet the demand. Kansas City is undertaking the largest single infrastructure project in its history with the build of the KCI New Terminal & Parking Project, placing an even greater demand to fill the labor shortage. The TWEP programs will bring a unique opportunity to increase the skilled labor pool and assist project workers with 3 | Prepared by Amazing Traditions, LLC

overcoming common barriers often facing individuals through access to free or subsidized transportation and access to child care with extended hours.

Population Map

Platte

96,899

Leavenworth

Clay

236,068

Ray

22,589

79,359

Johnson

Jackson 688,554

Kansas City Metro

578,797

Wyandotte 163,227

Cass

101,888

Source: U.S. Census Bureau

Regional Areas of Potential Effects The counties defined for the TWEP Needs Evaluation include Cass, Clay, Jackson, Platte and Ray counties in Missouri and Johnson, Leavenworth and Wyandotte counties in Kansas. It is important to note individuals from neighboring counties are likely to seek construction employment to be part of the building of the KCI New Terminal & Parking Project. The TWEP programs will be available to individuals outside the counties identified for this Needs Evaluation.

Background of the KCI New Terminal & Parking In November 2017, Kansas City, Missouri voters overwhelmingly approved construction of a New Single Terminal at Kansas City International Airport with 76% of the voters in support.

At just over one million square feet, the New Single Terminal & Parking project is the largest single infrastructure project in the City’s history.

It will have a profound and lasting economic impact on the region in the form of new jobs, opportunities for local and small businesses, and a first-class traveler experience for airport users.

The terminal will have 39 gates on opening day, with the ability to expand to 50 gates in the future. The project will also include a 6,300-space parking structure, along with other landside and airside improvements.

Completion is estimated in the first half of 2023.

The New Terminal will support more efficient airline operations and will allow passengers to enjoy the convenience of modern air travel in a facility with updated technology and amenities, close and convenient parking, spacious gate areas, and ample food and beverage options.

Kansas City continues to be recognized as a world-class city. The new terminal will greet visitors with a warm Kansas City welcome and send hometown travelers off in style.

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Why is THE TWEP Important?

According to the Associated General Contractors of America, construction is a major contributor to the U.S. economy. The industry has more than 680,000 employers with over 7 million employees and creates nearly $1.3 trillion worth of structures each year.

Construction is one of the largest customers for manufacturing, mining and a variety of services.

A study done by the Kansas City Aviation Department states that the build of the KCI New Terminal & Parking Project will generate a one-time total economic impact of up to 17,604 jobs, earning $759 million in household income and $2.18 billion in business revenues.

Kansas City Construction Contracts $2.5 Billion Non-Residential $1.9 Billion Residential $0.8 billion Non-building (infrastructure)

Construction (residential + nonresidential) employed 7.5 million workers in July 2019, an increase of 177,000 (2.7%) from July 2018.

A survey conducted by AGC of America in 2018 shows an overwhelming majority of construction firms are having a hard time finding qualified workers- particularly hourly craft professionals.

Kansas City is not immune to the affects of labor shortages in finding qualified workers to operate and grow their businesses, which can also curb economic growth.

As of October 2018, it was reported in the KC Chamber’s Economic Forecast that there were construction contracts totaling $5.2 billion, with non-residential construction representing approximately $2.5 billion and the remainder in non-building and infrastructure building projects. The construction of the KCI New Terminal & Parking Project will require 800 to 1,200+ construction workers to keep the project on schedule.

Sales Tax Revenue Projections for the KCI New Terminal & Parking Project

$1.2 Million

$1.6 Million

Source: Kansas City Aviation Department Economic Impact of New Terminal Development at Kansas City International Airport, September 2, 2015

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Identification of Social and Cultural Performance Measures An examination of household demographics, educational attainment, and social and economic variables in the community provides the basis to understand where communities can target funding for projects that seek to close or lessen gaps. The economic impact of fostering healthy communities helps create a stable eco-system with access to quality education, affordable housing, livable wage jobs, transportation, physical activity, nutrition, and health care.

The Center for Economic Development and Business Research reports expectations of adding more than 16,100 new jobs in 2019 in the areas of production, service, and government sectors. With record low

unemployment of 3.6% nationwide as of July 2019, employers will face increased challenges finding qualified employees. These challenges will carry over into the needs of securing a sustainable workforce for the construction of the KCI New Terminal & Parking Project. The 2019 Economic and Workforce report ranks construction as the third largest industry with employment growth projected to grow by 16.9% by 2026.

Kansas City Quick Facts:

91.5%

90%

High School Grad or Higher

English Speaking Home

$180,700 65%

Owner Occupied Housing Units

Median value of owneroccupied housing units

Source: U.S. Census Bureau (2017). American Community Survey 1-year estimates.

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The labor shortage in construction opportunities in Missouri are projected to increase 11.3% by 2026, adding an additional 14,222 jobs into the job market for which there are not a sufficient number of skilled workers.

Kansas City Region Largest Growth Industries 2016-2026 26%

The Missouri Department of Labor reports Construction to be among the top three industries with the highest levels of employment growth.

19%

17%

11%

9% 6%

7%

7% 6%

Agriculture, Forestry, Fishing & Hunting

Other Services

Real Estate, Rental & Leasing

Local Government Excluding Edu. & Hospitals

Arts, Entertainment, & Recreation

Finance & Insurance

Retail Trade

Construction

Accommodation & Food Services

The Kansas Department of Labor expects the number of Construction Occupations will increase by 8.7% from 2016 to 2026 in the Kansas City Region. Over this time period, projections show 23,207 total job openings in Construction and Extraction Occupations.

Professional, Scientific, & Tech

.6%

Note: KC Metro Region includes Cass, Clay, Jackson, Platte and Ray. Source: Metric Industry Projections

With a 3.7% unemployment rate in Kansas City, employers must look at strategies that can be implemented to tap into nontraditional labor pools to create a skilled workforce to fill the gap. Strategies that look at upskilling opportunities through workforce programs not only helps increase their earning potential but fills critical labor gaps for employers.

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Geographic Labor Data

350k 300k 250k 200k 150k 100k

In Labor Force Employed Not in Labor Force

Wyandotte Co, KS

Leavenworth Co, KS

Johnson Co, KS

Ray Co, MO

Platte Co, MO

Jackson Co, MO

Clay Co, MO

0

Cass Co, MO

50k

Note: People may not participate in the labor force for a number of reasons, including retirement, disabilities, taking care of a family member, and attending school.

Source: American Community Survey, 2018 Note: Additional information on category definitions can be found here: www.census.gov/ glossary/#term_Worker

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$83.5k $75.7k $65.8k

$67.7k $52.6k

Wyandotte Co, KS

Leavenworth Co, KS

Johnson Co, KS

Ray Co, MO

Platte Co, MO

$46k

Source: U.S. Census Bureau, 2017

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$70.7k $61.6k

Jackson Co, MO

All parents face challenges balancing work and family responsibilities, which can be particularly acute for low-income families.

Programs that address workforce training, access to child care, and transportation can help close the labor shortage gap.

Median Household Income

Clay Co, MO

The costs of employee turnover is often significant for employers when factoring in the time spent for recruiting, interviewing, hiring, orientation and training, lost productivity and lost expertise. According to Society for Human Resource Management, the cost of replacing an employee is somewhere between 90% and 200% of their annual salary.

Income provides economic resources that shape choices about housing, education, child care, food, medical care, and more. The accumulation of savings and assets helps cushion and protect us in times of economic distress. As income and wealth increase or decrease, so does health.

Cass Co, MO

The relationship between employers and employee is very different with record low unemployment nationwide creating more jobs than available candidates. According to the Bureau of Labor Statistics, the number of individuals quitting, or voluntarily separating, is rising year-over-year. This may reflect an increasingly more competitive job market causing employers to re-evaluate their talent retention models to keep the people they hire longer.

Identification of all Affected Individuals and Groups Each of the counties included in this Needs Evaluation face their own unique opportunities and challenges. The smaller populated counties often have reduced access to the same resources afforded to larger communities; however larger counties often experience a higher cost of living that can offset accessibility to employment, education, transportation, and housing opportunities. The gaps will often be reflected in communities with higher rates of poverty, higher unemployment or under-employment, households with no motor vehicles, lower educational attainment, and uninsured households.

Responding to potential barriers to expanding employment, nearly one-half (47%) of Missouri employers indicate a shortage of workers with knowledge of skills are a problem.

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The communities who will benefit the greatest from the TWEP programs will be the available workforce, including those who are unemployed, under-employed and individuals who have limited trade or post-secondary education. Those who seek construction jobs at the KCI New Terminal & Parking Project will have the opportunity to learn construction trade skills.

Unemployment Map

Platte

1,775 (3%)

Leavenworth

Clay

4,814 (3.5%)

Ray

538 (4.7%)

1,456 (3.9%)

Jackson Johnson

15,881 (4.3%)

11,291 (3.3%)

Wyandotte 4,288 (5.3%)

Source: BLS, LAUS, August 28, 2019

Cass

1,947 (3.5%)

Kansas City Metro

It’s widely understood how important diversity, equity and inclusion is to the business community and economic development. Individuals from diverse backgrounds can bring different talents, skills and experiences that can contribute to innovation, increasing the talent pool, and improve employee performance. When employees are comfortable and happy in an environment where inclusion is a priority, it contributes to higher levels of job satisfaction and talent retention.

Race Data by County 100% 80% 60% 40% 20%

Wyandotte Co, KS

Leavenworth Co, KS

Johnson Co, KS

Ray Co, MO

Platte Co, MO

Jackson Co, MO

Clay Co, MO

Cass Co, MO

0%

White

Asian

Black or African American

Native Hawaiian and Other Pacific Islander

American Indian and Alaska Native

Some other race

Source: US CensusÂ

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Access to safe and affordable child care is critical for families to have access to increase their household income. Absenteeism and employee turnover is often linked to challenges families face when trying to meet their child care needs. ChildCare Aware of America reports:

A study by the Mid-American Regional Council reports there are nearly 1,900 facilities across the Kansas City region, however many communities lack accessible child care. Child care deserts are common in rural parts of the Kansas City region, with several pockets in the urban core that offer fewer child care options.

Children by Age Group by County

Child care affects businesses’ bottom line. U.S. businesses

lose $4.4 billion

annually due to employee absenteeism as the result of child care breakdowns.

6,756 7,370

Cass Co, MO

16,302 16,276

Clay Co, MO

47,883 45,868

Jackson Co, MO

5,692 6,071

Platte Co, MO

Every six months, 45% of employed parents experienced some kind of child care breakdown,

resulting in missing

an average of 4.3 days of work.

Ray Co, MO

1,462 1,572 39,180 40,744

Johnson Co, KS

Leavenworth Co, KS

5,187 6,756

Wyandotte Co, KS

$28.9 billion in wages are lost annually

by working families who do not have access to affordable child care and paid family and medical leave.

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Children Under 5

13,712 12,424 Children 5-9

Source: American Fact Finder

Access to child care is a growing concern.

Parents must find alternative care options or face missing work, which can mean lost wages or even losing their job. The child care program offered through the TWEP can assist parents in overcoming this barrier.

Households Receiving Child Care Assistance Kansas

Missouri

18 Platte

245 Ray

1,031 Wyandotte 35,043 Missouri

5,316 Jackson

310 Leavenworth

10,578 Kansas

1,338 Johnson

774 Clay 461 Cass

Definitions: Number of children participating in one of the following subsidized child care programs: FUTURES, transitional, income maintenance/income eligible, at-risk, and child care and development block grant. Source: MO Dept. of Social Services; US Census Bureau

Definitions: Child Care Subsidies is the average monthly enrollment of children in the Kansas Child Care Assistance Program. Source: Kansas Department for Children and Families (formerly Kansas Department of Social and Rehabilitation Services)

The Supplemental Nutritional Assistance Program (SNAP) provides important nutritional support for low-wage working families, lowincome seniors, people with disabilities living on fixed incomes, and other individuals and households with low incomes. The Center on Budget and Policy Priorities reports that more than two-thirds of SNAP participants are in families with children; a third are in households with seniors or people with disabilities.

individuals and families receiving SNAP and other similar government benefits to obtain employment in higher paying industries.

With recent proposed policy changes nationwide by the next fiscal year, it will become increasingly more important for

With construction ranking third in Kansas City’s largest growth industries through 2026, this will provide individuals with opportunities to increase their earning potential and become less dependent on government benefits.

SNAP Benefits by County Cass Co, MO

6,044 12,261

Clay Co, MO

67,580

Jackson Co, MO Platte Co, MO Ray Co, MO Johnson Co, KS Leavenworth Co, KS Wyandotte Co, KS

3,660 1,493 7,432 2,129 12,963

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Data Source: MO Dept. of Social Services; US Census Bureau; MO Office of Administration, Division of Budget and Planning, Kansas Department for Children and Families (formerly Kansas Department of Social and Rehabilitation Services).

Individuals who may be dependent on government services can become more selfsufficient and, in turn, save taxpayer money which results in greater contributions to the local economy. Some of the challenges facing this potential workforce include access to transportation, child care, and workforce training.

$924

$880 $851

$820

$728

$947

$883 $777

2.8%

1.6%

1.8%

Leavenworth Co, KS

1.7%

1.9%

Johnson Co, KS

2.1%

2.1%

Median Rent

Average Increase

Source: American Community Survey, 2018

Transportation While vehicle ownership is the primary mode of transportation for most residents in the areas being evaluated, upcoming generations are creating changes in this area. The millennial generation and Gen Z (everyone under 40), is increasingly being drawn to urban areas where a car is not as necessary for most of their needs. The increase of on-demand transportation through companies like Uber, Lyft and zTrip, creates more economical options for individuals.

The Greater Kansas City area offers public transportation through KCATA, Johnson

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Wyandotte Co, KS

Ray Co, MO

.99%

Platte Co, MO

The non-traditional labor pool may include exoffenders, unskilled labor, dislocated workers, disabled, veterans, youth, immigrants, and disadvantaged individuals. Many of these individuals are often overlooked when the supply of a workforce is greater, however when employers can integrate workforce development programs into their hiring practices, it can have significant positive outcomes for both the employer and employee.

Median Rental Cost by County

Jackson Co, MO

Individuals who lack construction skills, access to child care, and transportation face barriers that prevent them from seeking construction employment opportunities at the KCI New Terminal & Parking Project. This makes the TWEP programs even more critical to fill the labor shortages and will help upskill the construction labor market.

Individuals experiencing difficulty affording their housing costs often have difficulty affording necessities such as food, clothing, transportation, and medical care. When they have access to employment opportunities with greater income potential, this will support their ability to start building equity.

Clay Co, MO

Tapping into the unemployed, underemployed, and non-traditional labor pool, requires a multipronged approach. Understanding where these individuals live and what characteristics make up these communities is important in the implementation of the Terminal Workforce Enhancement Programs.

Housing

Cass Co, MO

Identification of Social, Cultural Resources and Profiles

County Transit (The Jo), and the Unified Government Transit (UGT). It is possible to travel across the city using the different transit systems, however, there can be limited scheduling options. KCATA and The JO also offer numerous Park and Ride options for commuters allowing them to leave their car or bike to take the bus. While it is possible to reach the airport through public transportation, no options exist that would support those working in construction at the KCI New Terminal & Parking Project.

Commuters Living in Poverty

8.8% All Commuters

KCATA reports the routes with the top three ridership in 2018 are Prospect, Main Street, and Troost.

26.9%

Public Transportation Commuters

2018 Top KCATA Average Daily Ridership

4,477 Riders

3,659 Riders

4,277 Riders Race & Ethnicity

63%

A review of the Census Bureau survey shows there is often a demographic divide with the use of public transportation where commuters are disproportionately poorer than commuters driving alone to work.

Median Earnings All workers

$35,OOO $30,000 $25,000 $20,000

Source: U.S. Census Bureau

Public Transportation

$15,000 $10,000 $5,000 $0

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25%

24%

Black

Black

8% 10% White, Non-Hispanic

Kansas City Commuter Demographics

60%

Hispanic

Troost

Hispanic

Main Street

White, Non-Hispanic

Prospect

All Commuters Public Transportation Commuters Percentages refer to a group’s share of either public transportation commuters or all commuters. Source: U.S. Census Bureau, ACS, 2010-2012 estimates

Education

Income

Neighborhoods richer in social capital provide residents with greater access to support and resources than those with less social capital.

Individuals with higher educational attainment and higher status jobs are more likely to have greater social support than those with less education and lower incomes.

Personal income statistics provide a framework for analyzing current economic conditions in local economies and can serve as a basis for decision making. This can include:

Percentage Completing High School Only 42%

32%

33%

30%

29%

26%

• Economic models to project tax revenues and the demand for public utilities and services, • Determine areas for locating, expanding, and closing businesses, • Analyzing the economic impact of disasters, and, • Determining whether an area has sufficient income to undertake and support specific projects and activities to encourage economic development.

Per Capita Personal Income 2017

14% 15%

Cass Co, MO Clay Co, MO Jackson Co, MO

Wyandotte Co, KS

Leavenworth Co, KS

Johnson Co, KS

Ray Co, MO

Platte Co, MO

Jackson Co, MO

Clay Co, MO

Cass Co, MO

Platte Co, MO

Source: ACS, 2018

Ray Co, MO

45,075 46,026 44,432 54,893 40,116 69,977

Johnson Co, KS Leavenworth Co, KS Wyandotte Co, KS

41,101 32,085

Source: Bureau of Economic Analysis, 2018

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Social and Cultural Impacts

Inputs • Workforce training • Access to licensed child care with extended hours • Access to free and/or subsidized transportation

Underserved populations often face barriers that limit their access to in-demand jobs that make climbing out of poverty an uphill challenge. Some individuals may have crossed paths with the justice system, making it more difficult to qualify for jobs requiring an unblemished background. Others may simply not have been able to access additional education in a trade or skill, further limiting their ability to qualify for jobs with higher income potential.

Outputs Implementing programs and policies to help individuals overcome barriers for quality employment opportunities lead to quantifiable outcomes.

The relationship between growth and employment is not simply about the quantity of jobs created by growth; it is also about the types of jobs created. Programs that support a skilled workforce strengthen a sustainable workforce and healthier communities.

Individuals who participate in the building of the KCI New Terminal & Parking Project will develop a broad range of skills increasing their earning potential and ability to increase their standard of living.

Outcomes • • • • •

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Increased educational attainment Reducing gender inequalities Increased financial inclusion Healthier families and communities Supports increased economic growth

Input from the Community Individuals, businesses, nonprofits, and public entities across the Greater Kansas City region were surveyed to gain their input on programs that may help increase the available and qualified workforce. It’s important to understand not only the impact of having a labor shortage, but to also look at solutions that can lessen the gap for individuals needing greater employment opportunities and businesses who have more positions than qualified employees. There were a total of 289 respondents with 120 from individuals seeking employment opportunities, 110 public or private organizations supporting individuals seeking employment, and 59 businesses.

The responses received from all groups surveyed not only demonstrate a clear desire for programs to help individuals enter the construction trade, but an interest from individuals who want to be part of building the KCI New Terminal & Parking Project.

Individual Survey Responses When individuals find themselves in need of additional training, the reasons can range from a lack of funding, accessibility to postsecondary education or a need to retrain skills from another industry. This often contributes to lower earning potential and employment opportunities.

The responses from individuals demonstrate a clear interest for the TWEP programs to assist them in qualifying for construction opportunities at the airport.

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Individuals responding to the survey were from the following counties.

10%

Clay Co, MO

6%

Johnson Co, KS

52%

Jackson Co, MO

9%

Wyandotte Co, KS

8%

Platte Co, MO

7%

Other

3%

Ray Co, MO

9%

Note: Numbers may not add to total due to rounding.

46% of individuals surveyed said they have either turned down a job in construction or have not considered a job in construction due to lack of reliable transportation, access to licensed child care or a lack of construction skills.

20.6% report being denied a job in construction due to not having the required skills.

Slightly greater than 50% of the respondents who indicated an interest in entering the construction workforce were female; 54.4% were Black or African American.

“Have you turned down a job in construction or not considered a job in construction due to the following challenges? “ 19.6%

Would you accept an opportunity to work in construction at the New Single Terminal & Parking Project at the Kansas City International airport if you had access to the programs listed below?

Lack of reliable transportation

Access to licensed child care with extended hours Free or subsidized transportation Workforce training

76.6%

Lack of access to childcare

Lack of construction skills

Race & Ethnicity of Respondents

Hispanic or Latino

67.3%

8.4%

26.1%

7.78%

28%

10.7%

Two or more races

1%

33% White

Native American or Alaska Native

1%

Asian

54.4%

Black or African American

An overwhelming number of individuals stated they would accept an employment opportunity at the KCI New Terminal & Parking Project if they were offered workforce training, free or subsidized transportation, and/or child care with extended hours.

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“Childcare and Transportation are critical skill training anchors that lead to skill training completion and employment retention. Over 50% of the families in our 2700 square mile area are single parent families and affordable childcare available at all shift times increases the number of people to skill up and hire up. Transportation assistance is crucial because the further out the work location is the worse the transportation becomes because of a lack of arrival and departure time flexibility by the regional transportation system, due to the tremendous land mass it covers with a population that is not that dense.” - Clyde McQueen, President & CEO of Full Employment Council, Inc.

Business Survey Responses Employers need workers with the skills necessary to help them operate and grow their business. Some industries are experiencing rapid growth, while others are declining. Often there are specific skills and credentials needed to support specific industries. Workers often have little budget to pay for more training, which makes access to workforce training programs so important to help address the labor shortage.

“Please check which counties most of your employees reside.”

Platte 30%

Leavenworth

Clay 37%

Ray 7%

15%

Businesses may choose to not pursue bigger projects or find it difficult to be awarded larger contracts without a prepared workforce to meet the project demands. Without access to a qualified workforce, this can limit business growth and ultimately affect economic development.

“Do you expect any changes in the availability of hourly craft personnel over the coming 12 months?”

Easier to hire

Jackson Johnson 30%

Wyandotte 44%

Larger and more established businesses are more likely to be able to manage a shortage of a qualified workforce by being able to shift employees between higher and lower priority projects. Smaller businesses are not likely to have this ability and therefore may find it difficult to expand their business with an evergrowing labor shortage.

81%

Kansas City Metro

Cass 19%

Businesses surveyed who offer services or products in construction indicated that most of their employees reside in Jackson County, MO.

46.2% of businesses surveyed stated they struggled finding employees and 19.2% reported losing craft personnel to other employers.

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Continue to be easy

11.1% 3.7% 59.2%

No change

18.5%

Continue to be difficult More difficult to hire

7.4%

“How would you describe your current situation in filling salaried and hourly craft positions?”

26%

Having a hard time

44.4%

No open positions

29.6%

No difficulty filling positions

55.6% of businesses reported they were having to include longer construction schedules in their bids or contracts and 22.2% are including higher prices. The additional cost of these projects can impact communities through increased taxes and cost of goods.

“Would having access to the following programs assist with staffing your construction projects?”

37.5%

Access to transportation

81.3%

Workforce training program

31.3%

Access to licensed child care

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“The KCI Airport project is a huge lift for our metro area considering our already strained construction workforce. The key to meeting the workforce needs for a project of this size is to ensure that those who may be currently un- or underemployed have access to these jobs – both physical access to the project site, as well as access to just-in-time training programs designed to upskill those who wish to embark on a construction career. Workforce Partnership was excited to support the Terminal Workforce Enhancement Programs designed to provide job seekers with construction training, provide workers living in the city with transportation assistance to/from the project and provide extended child care hours needed to ensure workers’ families are safe and cared for during irregular work schedules.

These programs embody the best features of a public-private partnership and demonstrate how public and private dollars can be blended not only to construct the airport of the future, but also to create the workforce of the future.”

-Keely J. Schneider, Executive Director of Workforce Partnership (Kansas Local Area III Workforce Board)

Organizations and Public Entities Survey Responses Gathering input from organizations and public entities that provide assistance with employment and training is vital to understanding how their clients may benefit from providing targeted workforce programs for employment in the construction trade. These agencies provide valuable aid to individuals who need additional skills to qualify for higher paying jobs.

Organizations who work with individuals seeking employment often focus their services for clients living in specific geographic boundaries due to funding restrictions. This is where collaboration with other agencies to bridge the gaps can be vital to the community.

Communities often share common characteristics reflecting their socioeconomic status. Measurements encompassing educational achievement, poverty and poor health, ultimately affect our society. When families can raise out of poverty, it increases the health of their families, the communities they live in, and supports increased economic growth.

“Please rank the client population served with 1 being the greatest population and 7 being the smallest.”

0

White

“Please select the counties you serve.”

Black or African American

66% 41%

40%

22%

21%

29% 28% 31%

Asian

Wyandotte Co, KS

Leavenworth Co, KS

Johnson Co, KS

Ray Co, MO

Platte Co, MO

Jackson Co, MO

Clay Co, MO

Cass Co, MO

Native Hawaiian or Other Pacific Islander

American Indian or Alaska Native

Hispanic or Latino

Two or more races

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2

4

6

8

The pay gaps are greatest between individuals who have increased levels of education compared to individuals with limited educational attainment and is only expected to continue as demands for a skilled workforce increases. It is a means of social mobility and key to economic growth.

It’s clear the agencies offering employment assistance see value in the availability of paid workforce training, access to licensed child care, and free or subsidized transportation.

“Please rank the educational attainment for the client population served with 1 being the highest level and 6 being the least.”

0

1

2

3

Less than High School Graduate

4

5

6

“Thinking about your client population interested in a career opportunity working at the airport, would your clients benefit from the following programs?”

Workforce Training

97%

Access to Licensed Child Care

88.4%

Free or Subsidized Transportation

98.6%

What percentage of your client population do you think may have interest in employment opportunities in the construction industry?”

8%

High School Graduate

59%

15%

Some College

18% Associates Degree

Bachelor’s Degree

1-25% 26-50% 51-75%

Graduate or Professional Degree

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76% or more

Barriers to Expanding Employment The Department of Higher Education and Workforce Development reports that a shortage of workers is the top barrier to expanding employment, given the low unemployment rate in Missouri. In June 2019, more than 1,600 Missouri companies with more than five employees reported:

• Nearly one half (47%) report a shortage of workers with knowledge of skills • One-third (33%) reported economic conditions • One-fourth (23%) reported government policies or regulations The chart to the right represents rankings from Missouri employers of how important each employment barrier was to their business. A shortage of training programs was the highest barrier across the state, with significantly more non-metro employers (81%) than metro employers (64%).

Conversely, lack of child care and lack of transportation were more important in metro areas than non-metro areas.

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Barriers to Expanding Employment 73% 64% 81%

Shortage of Training Programs

64% 66% 63%

Shortage of Workers with Knowledge/ Skills Lack of Child Care Access Lack of Transportation Access Lack of Information

Statewide Non-Metro

51% 56% 46% 45% 50% 39% 32% 37% 28% Metro

Source: Missouri Economic Research and Information Center, 2019 Economic and Workforce Report

TWEP- Terminal Workforce Enhancement Programs Overview Edgemoor will offer small business and employee-focused programs to help build and support a sustainable workforce. The Terminal Workforce Enhancement Programs (TWEP) include several programs that have already been implemented on the project, such as the low-interest loan program, the pay-withoutdelay program, and supplier support, for example.

Three of the TWEP programs, specifically the paid workforce training program, the free transportation program, and a program that offers extended hours at certain licensed childcare facilities, require that a Needs Evaluation be conducted prior to starting the programs.

The TWEP will be available to the project workforce to help eliminate barriers to working on the project and to help people build a career in construction.

Edgemoor is committed to creating pathways for individuals interested in building a lasting career in the construction industry.

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Project Transportation Edgemoor will work in partnership with KCATA to provide free or subsidized bus transportation services to workers traveling to and from the project site. These services will be available Monday-Friday each week. Buses will pick up project workers from at least two convenientlylocated pick-up and drop-off locations in the greater Kansas City metro area.

Licensed Child Care Edgemoor has committed to funding extended child care hours at select conveniently-located licensed child care centers near the New Terminal project site and in downtown Kansas City. As part of this program, Edgemoor will compensate child care centers for providing early morning and late evening care solely for children of project workers. This service is only available to workers on days they are working on the project.

Workforce Training Edgemoor, in collaboration with local labor, workforce and trade organizations involved in the New Terminal, is developing a 3-week Workforce Training Program to be offered to Kansas City metropolitan area residents. This program is designed to provide fundamental construction and life skills training, as well as a comprehensive overview of the different career paths available in the construction industry.

The Workforce Training Program is designed to align with the New Terminal project schedule to maximize the number of participants who can work on the project. The program includes a full-time director who will manage candidate recruitment and selection and monitor the progress of program graduates who are put to work on the New Terminal site.

Meeting the Challenge Through TWEP The Workforce Training Program will help fill the gap to ensure a sustainable workforce for the building of the KCI New Terminal & Parking Project. Without strategic programs that are targeted at closing the gap of the Construction labor pool, it poses a threat not only to the recruitment of new talent, but it could weaken broader economic growth due to slower schedules and increase labor costs tempering the pace of economic development.

“The ongoing labor drought continues to put pressure on the already high-risk, low-margin construction industry. As labor challenges continue to grow, technology will play an increasingly important role supporting the existing workforce while inspiring the next generation of industry professionals.” -Sarah Hodges, Director, Construction Business Line, Autodesk

Forecasted Workforce Needs Edgemoor anticipates neeeding an average of 800 workers per day and at the peak of the project, it will need an estimated 1,200 workers per day. The estimated 5.9 million work hours to complete the project will bring many opportunities for small businesses and individuals seeking construction employment.

The majority of the construction jobs will be paid at prevailing wages, accounting for 95 of the work hours for the project. Missouri’s Prevailing Wage Law requires that minimum wage rate must be paid to workers on public works construction projects valued at more than $75,000 to include projects such as bridges, roads, airports and government buildings.

227,522 Specialties

789,145 Sitework 284,719 Foundations

1,645,247 MEP

5,935,593

Total Project Work Hours

905,686 Interiors

1,618,555 Structure

464,719 Enclosure

Source: Clark | Weitz | Clarkson

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Total Project Work Hours by Job

481,894

Carpenters (includes Pile Drivers)

826,367

Laborers

1,195,585

Iron Workers (Includes Rodmen)

205,182

Glaziers

687,284

Operators

145,205

Finishers

208,709

Teamster

147,319

Plumbers

237,427

Steamfitters

69,471

Sheet Metal

60,942

Insulators

56,623

Sprinkler Fitter

1,081,931

Electrician

77,006

Masons

70,301

Painter

107,005

Roofer

2,281

Caulker

70,827

Elevator

204,237

Specialty Source: Clark | Weitz | Clarkson

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Next Steps for the Terminal Workforce Programs Local workforce boards and other community partners can and should be part of the solution in addressing the labor shortage challenges.

The Terminal Workforce Enhancement Programs represent a collaboration with the City of Kansas City, MO, to identify common barriers that may prevent individuals from seeking construction employment at the KCI New Single Terminal Airport & Parking Project.

There will be individuals seeking construction opportunities from all the counties included in the Needs Evaluation and likely even further away. There is a need for the TWEP programs in all the counties, however, the greatest need exists in Jackson County, MO, and Wyandotte County, KS. Overall, these two counties reflect the communities with the highest unemployment and recipient of government benefits. They also have the lowest per capita income and educational attainment.

The potential impact for the communities benefiting from these programs can lead to greater economic growth and stability.

Opportunities realized for individuals participating in a paid workforce training program will help prepare them for employment with greater earning potential and an increased skill set. The long-term benefits to be realized are significant. Higher paying jobs are more likely than lower paying jobs to provide workers with safe work environments and offer benefits such as health insurance and sick leave. More educated workers also fare better in economic downturns.

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Businesses benefit from a qualified labor force to help remain competitive in today’s global economy. There is a financial cost when project completion times are extended, driving higher overall project costs. These costs are often passed onto the communities and/or consumers.

The free or subsidized transportation to and from the airport is significant, particularly since the airport is not easily accessible without reliable transportation. The dedicated transportation for project workers will help individuals who may be reliant on public transportation or otherwise without a reliable vehicle. Locations for the routes will likely need to be in close proximity to the highest routes of KCATA ridership in Kansas City, MO, and downtown Kansas City, KS. The destination routes may need to be slightly adjusted to be near the licensed child care providers identified.

Shifts on construction sites often have early start times or evening hours to accommodate the needs of the project. The licensed child care with extended hours will make it possible for project workers to ensure their child is able to receive care without the added costs that often occur when extended hours are needed.

There is no question that the TWEP programs are necessary and will help address the labor shortage for the KCI New Single Terminal Airport & Parking Project. Delays to the project may lead to a longer completion time and subsequent higher project costs. Communities with a higher skilled workforce are healthier and support a rise in living standards for their citizens.

Acknowledgments Special thanks to all the organizations for their contributions and participation supporting the KCI New Single Terminal Airport & Parking Project.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Alive and Well Healthy Communities Blue Springs Public Library Blue Springs Chamber City of Kansas City, MO & Research Team Full Employment Council of Kansas City Grandview Chamber Greater Kansas City Chamber Jackson County COMBAT Jackson County Legislatures Jewish Vocational Services Kansas City Missouri Police Community Interaction Officers KC Public Library KCK Economic Development Council KCK Community College KS Veteran Employment Services/ Registered Apprenticeship Program Lee’s Summit Chamber Mattie Rhodes MCC Full Employment Council Minority Contractors Association Mid-American Regional Council Missouri Department of Higher Education & Workforce Development MO Builders Association Morning Star Youth & Family Life Center North East KC Chamber Northland Chamber Northland Neighborhood, Inc. Platte County Economic Development Council South Kansas City Alliance Southeast Community Center The Family Conservancy The Salvation Army Trademark Property- Zona Rosa UG Health Department United Way of GKC United Way of WyCo Youth Build Western MO & KS Laborers District Council Workforce Partnership WyCo Catholic Charities

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Retrieved from: https://www.cbpp.org Kansas Department of Children and Families (formerly Kansas Department of Social and Rehabilitative Services). (2019). Sourced by The Annie E. Casey Kids Count Data Center. SNAP Benefits in Kansas.

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Children in Families Receiving SNAP (food stamps) in Missouri. Retrieved from: https://datacenter. kidscount.org/data/tables/2003-children-in-families-receiving-snap-food-stamps?loc=27&loct=5#detail ed/5/4149-4263/false/573,869,36,868,867,133,38,35,18,17/any/4210,17336

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Missouri Office of Administration, Division of Budget and Planning. Sourced by The Annie E. Casey Kids Count Data Center. (2019). Children in Families Receiving SNAP (food stamps) in Missouri. Retrieved from: https://datacenter.kidscount.org/data/tables/2003-children-in-families-receiving-snap-food-stamp s?loc=27&loct=5#detailed/5/4149-4263/false/573,869,36,868,867,133,38,35,18,17/any/4210,17336 (T. Kenton, personal communication, September 10, 2019).

Unison Consulting, Inc. (2015). Economic Impact of New Terminal Development at Kansas City International Airport. Retrieved from: https://www.flykci.com/media/1655/kci-terminal-developmenteconomic-impact_final_090215.pdf United States Bureau of Labor Statistics. (2019). Local Area Unemployment Statistics. Retrieved from: https://www.bls.gov/lau/ United States Census Bureau. Sourced by The Annie E. Casey Kids Count Data Center. (2019).

Children in Families Receiving SNAP (food stamps) in Missouri. Retrieved from: https://datacenter. kidscount.org/data/tables/2003-children-in-families-receiving-snap-food-stamps?loc=27&loct=5#detail ed/5/4149-4263/false/573,869,36,868,867,133,38,35,18,17/any/4210,17336 United States Census Bureau. Various American Community Survey Results. Retrieved from: https:// data.census.gov/cedsci/?#

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