2024 Craft Workforce Development Benchmarking Report

2024 Craft Workforce Development Benchmarking Report

Table of Contents 1.

About the Greater Baton Rouge Industry Alliance, Inc.

2.

Purpose of the Craft Workforce Development Awards

3.

Workforce Timeline

4.

Louisiana and the GBRIA Region Labor Forecast

5.

Value of Benchmarking Program

6.

2024 Award Recipients

7.

Awards Program Methodology

8.

Benchmarking Results a.

Respondents

b.

High School Benchmarking Results

c.

Post-Secondary Benchmarking Results

d.

Contractor Benchmarking Results i.

Program Documentation and Management Commitment

ii.

Workforce Development Metrics

iii. Recruitment iv. Assessment v.

Training

vi. Career Path Development vii. Retention

9.

Conclusions

10. Contact Information

1. About the Greater Baton Rouge Industry Alliance, Inc. The Greater Baton Rouge Industry Alliance, Inc. (GBRIA) is a trade association, 501(c)(6) non-profit organization, whose membership includes 76 industrial plant facilities spanning the Mississippi River industrial corridor, from Baton Rouge to New Orleans. Its membership is comprised of manufacturers in petrochemical, paper, bulk storage, and other industries. The mission of the organization is to bring value to communities by developing innovative solutions to common industry issues advocated with one voice.

The GBRIA Workforce Development Committee is led by GBRA Board of Director members Rafael Gonzalez , Director of Chemical Plant Operations at Honeywell-Baton Rouge, Theo Webre, Senior Engineering and Maintenance Director at Dow, and Steve Welch, Plant Manager, OxyChem Convent.

Committee Members: Jeff Blohm, ExxonMobil Ayanna Burton, Nucor Corey Callegan, Shintech Jeff Carkuff, Westlake Peyton Chiasson, OxyChem Tricia Delatin, Syensqo Buck Dingler, SNF Flopam Truth Garrett, Marathon Sarah Haneline, BASF Mark Morvant, Shell Chad Naquin, Olin Carl Raymond, ExxonMobil Baraynia Robillard, ExxonMobil La’Shantena “Tee” Rounds, Nucor Alan Smith, BASF Jason Zeringue, Dow Allison Zinskie, PBF Energy

Awards Judges: Jeff Carkuff, Westlake Peyton Chiasson, OxyChem Buck Dingler, SNF Flopam Cameron Falgoust, Rubicon Tressa Fuller, Rubicon Rafael Gonzalez, Honeywell Sarah Haneline, BASF Steve Ledoux, Orbital Engineering Charles Nailor, Americas Styrenics Arthur Pennison, Westlake Adam Rabalais, Westlake Ebonie Raby, Nutrien Febbe Robertson, Orbia Baraynia Robillard, ExxonMobil Alan Smith, BASF Sam Streacker, Marathon Jake Valenti, OxyChem Rachel Vincent, Methanex Steve Welch, OxyChem Jason Zeringue, Dow

2. Purpose of the Awards Program The purpose of the GBRIA Craft Workforce Development Awards Program is to recognize workforce development efforts of individual firms and educational institutions that prepare the current and future workforce.

The awards program for contractors conveys GBRIA’s strong support for improving craft workforce development performance and acknowledging the overall importance of contractors as an extension of a plant’s workforce.

The awards program for high schools and post-secondary institutions provides a way for industry and educational institutions to gain valuable insights into each others’ needs and expectations and conveys the quality of programs and curricula used to educate students.

This benchmarking report encompasses data collected during the awards submission process and presentations. GBRIA member facilities encouraged each other and their contractors to invest in comprehensive workforce development programs that address recruitment, assessment, training, career path development, and retention in the workplace and career path.

Participation in the awards program is a strong indicator of an organization’s leadership and commitment to the goals of workforce development, whether it be a plant, contractor or educational institution. GBRIA and its members thank each nominee for participating in this year’s event. The awards and benchmarking program entered its 17th year in 2024.

3. Workforce Timeline A large portion of the workforce in the region will retire within the next 5-10 years. This means that attracting and educating skilled crafts people is an urgent need.

Expected Age Attrition (Industrial Craft & Engineering/PM Disciplines) Louisiana 31.3%

Attrition in 15 Yrs 22.9%

Attrition in 10 Yrs 15.6%

Attrition in 5 Yrs

11.5%

Attrition in 2 Yrs 0.0%

10.0%

42.6%

Industrial Craft Disciplines (Retirement Age 61)

31.6%

23.3%

18.9%

20.0%

30.0%

ATTRITION PERCENTAGE (%)

40.0%

Engineering/PM Disciplines (Retirement Age 64)

50.0%

4. Louisiana and the GBRIA Region Labor Forecast The following graphs show very strong investment interest in Louisiana. Mega projects are those that plan to spend at least $1 Billion or more. Many of the newest projects being planned are to meet the need for carbon sequestration and sustainable energy solutions.

Continued strong investments are due to the low price of natural gas. Louisiana has been a globally competitive place to invest in since fracking technology improved in the early 2000’s.

Project labor demand is driven by the capital investment required to develop a mega project. From the total cost, materials and labor are segmented, with demand shaped by the combined need for direct hires, indirect staff, and contractors during peak construction, as well as the essential personnel to maintain the facilities once operational.

Demand Curve of Louisiana Mega Projects

Mega Projects

Mega Projects w/o Projects on Hold

LA Industrial BLS Supply

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Jan-24

Apr-24

Jul-24

Oct-24

Jan-25

Apr-25

Jul-25

Oct-25

Jan-26

Apr-26

Jul-26

In the GBRIA region, between Baton Rouge and New Orleans, the data show a similar pattern to the mega projects statewide. The following graph shows that the number of people needed (headcount) increases steadily until late 2026 and then drops off.

The drop is mainly due to a lack of information in dates further out. By all indications, the increased level of needs may continue for several years beyond 2027. A key observation from this chart is the fact that the supply of skilled workers falls significantly short of the demand. The supply data is derived from the Bureau of Labor Statistics' records of individuals currently employed in craft disciplines. However, the data may be limited due to the broad categorization by sector and industry subsets.

Consequently, the supply headcount may be underestimated.

Despite supply data accuracy, the gap between the supply and demand for craft professionals is a major concern. Industrial project construction companies will need to source labor for these projects from out-of-state unless more people in Louisiana gain the skills necessary to join the industrial construction workforce. For this reason, GBRIA engages in numerous programs, works with many partners, and hosts the Craft Workforce Development Awards program to attract, educate, and place new workers in the industry.

5. Value of Benchmarking Program The GBRIA Craft Workforce Development Awards Program and Benchmarking Survey not only serves as a means of recognition for nominees, but also, to gain valuable insights into education and workforce trends. The following results were compiled from the applications of the nominees and provide a means to understand how schools and contract companies’ workforce development programs measure up to industry expectations. In addition, the results will be used by GBRIA and its members to help guide efforts to improve workforce development for skilled crafts people.

6. 2024 Craft Workforce Development Award Recipients High Schools: Award of Recognition: •

Brusly High School | WBR Career Academy

Award of Merit: •

East Ascension High School

•

False River Academy

•

French Settlement High School

•

Joseph A. Cullier Career Center

•

Northeast High School

•

Zachary High School

Award of Excellence: •

East Baton Rouge Career and Technical Education Center (CTEC)

•

Live Oak High School

•

St. Amant High School

•

Walker High School

•

West Feliciana High School

Post-Secondary Institutions: Award of Merit: •

Louisiana State University (LSU) Online & Continuing Education

Award of Excellence: •

Associated Builders and Contractors (ABC), Pelican Chapter

•

Alliance Safety Council

•

Baton Rouge Community College

•

River Parishes Community College

Industrial Contractors: General Construction & Maintenance: Award of Recognition: •

Action Industries

Award of Merit: •

Brown & Root Industrial Services

•

Cajun Industries

•

CAM Industrial Solutions

•

Turner Industries Group

Award of Excellence: •

EXCEL

•

Performance Contractors

Specialty Hard Crafts: Award of Merit: •

MMR

•

Westgate

Award of Excellence: •

Triad Electric and Controls

•

ISC Constructors

Specialty Trade Crafts: Award of Recognition: •

BrandSafway

•

Deep South Crane and Rigging

•

Total Safety

Award of Merit: •

Brock Services

•

Precision Inspection Services

Award of Excellence: •

PALA Group

•

Turner Specialty Services

7. Awards Program Methodology Nominations Close April 26th

March

April

Nominations Open March 27th

May

Post Secondary & Contractor Applications Due June 7th June

High School Nominations Due May 24th

Awards Selection Meeting July 24th

July

August

Awards Banquet August 21st Judging Period June 17th - July 17th

Nominations opened on March 27th and closed on April 26th. Applications from nominated high schools were collected until May 14th while the submission window for post-secondary schools and contractor were open until June 7th. Nominees submitted applications provided statistics and documents related to their workforce development program. Additionally, high school nominees presented their programs in person, while post-secondary and contractor nominees recorded their presentations. The judging panel scored the applications based on a committee developed scoring rubric. Scores were submitted using an online form, where scores for each nominee were averaged and initial placements were made. On July 24th , the judging panel met to review the initial placements and agreed on final award placements.

Contractor nominees were divided into three categories: “General Construction & Maintenance”, “Specialty Trades Hard Craft”, and “Specialty Trade Contractors”.

Post-Secondary nominees were divided into two categories: “Technical Education” and “Continuing Education”.

High school nominees were considered as one category.

Details, terms, and definitions used for the application, benchmarking report and scoring can be found in Appendix A.

8. Benchmarking Results The 2024 Craft Workforce Development Awards Benchmarking Report is created from responses by the high schools, post-secondary institutions, and contract companies who participated in the program.

a. Respondents The contractor benchmarking results are based on the corporate data from the following companies. The high schools participating were listed above.

High School Respondents:

Post-Secondary Respondents:

Contractor Respondents:

b. High School Benchmarking Results The following key insights were gained from the high school data submitted.

12

11,536

2,536

High School Programs

Total Number of Students

Students Enrolled in Craft Programs

(Based on all high school respondents)

22%

of the total student body is enrolled in a craft course.

With an average class capacity of

22%

still yet to be filled.

67% of respondents attended ABC’s Build Your Future Event Top 5 Craft Programs students are enrolled in: 1.

2.

3.

4.

5.

629 551 512 232 57

Carpentry NCCER Core / OSHA General Welding Electrical HVAC

TOTAL : 1,981

100%

Students who enrolled in craft courses completed the course and received Industry Based Certifications (IBC)

c. Post-Secondary Benchmarking Results

5 Post-Secondary Institutions

3,580 Fall 2023 Enrollment: for Craft Courses

62%

3,099 Spring 2024 Enrollment: for Craft Courses

71%

Course Completion Percentage for Fall 2023

Course Completion Percentage for Spring 2024

38%

26%

Percentage of students Percentage of students that earned IBCs in that earned IBCs in Spring 2024 Fall 2023 *IBC – Industry Based Certifications*

37,489

39,908

Completed BOP or Safety Awareness Training in Fall 2023

Completed BOP or Safety Awareness Training in Spring 2024

d. Contractor Benchmarking Results

17

75,279,046

Contractor Companies

Total Hours Worked

101,217

Total Number of Employees

i. Program Documentation and Management Commitment The first section of the application reviewed each company’s documentation and management commitment processes. Companies were asked to upload a copy of their formal workforce development program, if available. The committee reviewed the supplied documents looking for inclusion of elements that describe the company’s workforce development goals and objectives, supervisor responsibilities and expectations, record keeping systems, and designated workforce development staff.

One hundred percent of participating nominees provided GBRIA with a Workforce Development document for review.

A strategic objective of GBRIA’s workforce development efforts is the development of an affordable, available, and skilled craft workforce. GBRIA members contribute 7 cents per skilled contract work hour worked at member sites to subsidize training costs at the ABC Pelican Craft Training Center. Contractors also make significant contributions of money and equipment not only to ABC’s Craft Training Center but also to many other educational institutions in the state to support craft training. Workforce development, like safety, is beneficial for both employers and individual workers. According to a 2007 report by the Construction Industry Institute (CII), craft workers achieving NCCER written certification typically receive an additional $1/hour, while those achieving performance certification receive another additional $1/hour or $4,160 per year for a person working at least 40 hours per week.

ii. Workforce Development (Based on all contractor respondents)

82%

9

Have Partnered with High Schools

Avg. Number of High School Partnerships

94%

Serve on a Workforce Development Committee

Companies seeking to reap these benefits must take employee feedback into account when creating their programs. Proper employee feedback systems should allow companies to evaluate the strengths and weaknesses of their current workforce development efforts and make changes to maximize their effectiveness. Companies scoring highest in this section provided sample employee surveys and described how often and when these types of surveys are conducted and how follow-up action is implemented.

Participation in associations also served as a method for GBRIA’s evaluation of companies’ workforce development programs. Ninety-four percent of participating companies provided support indicating their participation in area associations supporting workforce development.

75%

4

Avg. Number of College Partnerships

Have Partnered with Technical Colleges

100%

Have a Formal Written Workforce Development Program

Companies that participated in Workforce Development Events in 2023

12% Yes No

88%

iii. Recruitment This section covers questions relating to the recruitment of crafts in the last calendar year. The recruitment process includes defining a job, attracting interest, screening applicants, hiring, and integrating a new employee. Workforce development in terms of recruitment is making this process faster and cheaper without compromising the quality of the employees hired.

The existence of a formal process for recruiting new workers can serve as a sign of a company’s commitment to workforce development.

Companies were asked to provide documents of their recruitment process. The committee reviewed these documents looking for inclusion of elements such as partnerships with area high schools or community and technical colleges; participation in career days or job fairs; internship or co-op programs; scholarship or reimbursement programs; tool and equipment purchase programs and programs accommodating women and minorities in the workforce

94%

Companies that attend at least one job fair in Louisiana in 2023

100%

of respondents

of respondents

offer internal craft training via job site or a company-owned training center.

offer financial assistance for tuition or fees.

6% Yes No

94%

100%

of respondents

offer paid training or certification time.

iv. Assessment

100%

This section covers the 2023 activities related to of respondents assessing the skills of craft professionals. The assessment process involves evaluating an employee’s have a formal process skills, documenting results, and providing feedback for for skill and upgrade Avg. Number College improvement; aiming to make the process faster, Partner with Technical Colleges training forPartners skill cheaper, more accurate, and more productive.

Having a formal process for evaluating new workers' skills demonstrates a company’s commitment to workforce development. Top companies have strong assessment programs for both new hires and current employees advancing in their careers. The committee looked for how companies use assessments to assign skill levels and whether they consider the worker’s history, training, and experience. Additionally, they examined whether companies use both written and hands-on assessments and how they address skill deficiencies.

Of the companies surveyed, the training and/or full assessment period can last anywhere between several hours and several months depending on the scope that services require for the role.

Most Requested Performance Assessments by Craft 1.

2.

3.

4.

5.

6.

7.

Welder Mobile Crane Operator Rigger Instrumentation Technician Pipefitter Electrician Industrial Carpenter

deficiencies.

88%

of respondents

hold formal performance evaluations of craft employees.

Most Common Answer(s) for when performance evaluations were conducted:

Quarterly & Annually

v. Training:

28%

Training is the broad process of equipping employees with knowledge and skills to improve their work performance. All companies indicated that their program encourages employee access to formal craft training and facilitates access to certifications.

Employer encouragement often comes in financial form, since paying for training is usually the main obstacle for hopeful entrants to the industry as well as for existing employees. Employers often allow for paid training time, but the most common scenario is that employers reimburse the cost of the courses.

According to the survey results, most respondents offer financial assistance for employees’ formal training.

was the average percentage of U.S. based workforce enrolled in craft training for 2023.

(Based on 15 out of 17 respondents)

For those enrolled in 2023

59%

was the average completion percentage for craft training.

Employees are still likely to need a wide array of skills outside of their craft specialization to be effective in the workplace. The results above indicate that Ninety-four percent of participants’ training programs include Supervisory Development training for supervisors. Along with these general leadership skills, supervisors also require some more technical skills to effectively coordinate other workers.

utilize skill training beyond NCCER for more advanced crafts.

41%

The most common answer for identifying skill deficiencies was based on

Was the average number of craft professionals who’ve earned the highest certification level in their respective crafts.

(Based on 15 out of 17 respondents)

76%

of respondents

Supervisor’s Recommendations

vi. Career Path Development Career Path Development is the process of providing and communicating opportunities for employee advancement. Workforce development entails the creation of more opportunities and more effective communication of these opportunities. This section asked participating companies to provide their formal, written career path. Committee members looked for whether these career path documents described possibilities for advancement of employees; training requirements for advancement; and how employees can move into diverse areas of construction or management.

The opportunity to begin and excel in a career path is a key motivator for all craft professionals. One of the industry's biggest advantages is the ability to begin with minimal costs and receive on-the-job training.

Survey results show that more companies are now training and developing new hires with the goal of promoting them to management roles to ensure quality work for the next generation. It's crucial now more than ever for companies to hire, develop, and promote personnel to meet growing industrial demand.

94%

of respondents

have a formal career path program to inform employees of career opportunities.

94%

of respondents

require completion of leadership training to qualify for a supervisor role.

88%

of respondents

utilize in-house leadership training.

Ratio of Employee Taught Craft Trainings

6 : 1 Internal External (In-House) (At ABC)

vii. Retention Retention is the process of maintaining a work environment that encourages current employees to remain with the company. Committee members reviewed company-provided retention program documentation. Judges reviewed elements of nominee's retention practices and descriptions of how companies facilitate continuous employment employees Avg.toNumber College Partner with Technical between projects.

Partners Colleges

23%

94%

Is the median turnover rate among respondents

Facilitate continuous employment for craft professionals between projects

60% 59%percentage Was the average of employees who are Average Percentage of continuously employed Employees who are continuously employed

(Based on the 14 of the 16 respondents who said “Yes” to continuous employment of craft professionals)

(16 out of the 17 respondents)

Is your company working with or anticipating that you will work with the Inflation Reduction Act (IRA) apprenticeship program for projects in LA?

For those that answer "Yes", here's the breakdown our where the IRA program is being developed.

ABC Chapters

12%

27% 6% 27%

88% Yes No

In-House

40%

Third Party Firm In Development (Undecided)

vii. Retention Contractor nominees were asked what criteria is used during performance evaluations for craft professionals. Through their presentations, participants included the following elements used to assess employees: • Abilities • Attendance • Attitude • Dependability • Initiative • Judgement • Knowledge • Leadership • Personal Habits

• Productivity • Quality of Work • Respect • Responsibility • Safety • Skills • Teamwork • Work Ethic

The table below highlights the most common assessment criteria.

Ranking

1 2 3 4 5

Assessment Criteria

Safety Quality of Work Productivity Attendance Knowledge/Skills

9. Conclusion Each year, GBRIA’s Workforce Development Committee analyzes and adjusts the criteria and processes around the Craft Workforce Development Awards Program.

Changes to the program this year included a significant change to the program presentation model to allow judges more time to review submissions and to group similar trades within judging assignments for a more paralleled review. The committee's ongoing goal is to continuously review and adjust expectations and scoring to enhance the credibility of the awards program and to improve participating contractors’ performance of work at member sites.

When comparing year-over-year award placements, performance varies, however, overall effort in workforce development is trending upward. Nominees in all categories; high schools, post-secondary institutions, and contractors, showcased mature and sustainable results and are applauded for their efforts. GBRIA encourages continued collaboration between these three vital parts of the craft education ecosystem. Strength in these partnerships will continue to yield stronger educational programs and streamlined access to career onboarding and advancement.

As the demand for skilled craft professionals grow, the need to effectively recruit, train, and retain quality talent is paramount. The average age of a craft professional in Louisiana is 44 years old and the average retirement target for all craft professions is around 61 years old. It may take upwards of 10 years for a craft professional to reach the “seasoned professional” status highlighted in the training and attrition graph on page 5. This leaves a short window of opportunity to onboard and train a new workforce that can benefit from the historical knowledge of todays seasoned professional, before they retire.

GBRIA continues to drive and support efforts to increase awareness, understanding, availability, and desirability of our industry and craft careers, as we have for 54 years.

GBRIA thanks its members for nominating and supporting this program as well as the volunteers who dedicated time to judge and participate in the awards program in 2024.

Appendix A Methodology Terms 1.

Accreditation – Refers to formal certification of curriculum, assessments, instructors, and proctors or evaluators for National Center for Construction Education and Research (NCCER) or other Department of Labor (DOL) approved training and assessment programs.

2.

Applicable Work Hours – The hours worked by U.S. based employees in the reviewing year.

3.

Approved Assessment and Verification Processes a) The approved programs for merit shop contractors are the NCCER written assessment and performance verification programs. b) The approved programs for union contractors are journey level achievement of union programs or NCCER. c) For crafts where there are no approved (NCCER) skill assessments and performance verifications yet available, documentation by the contractor on how worker skills are assessed is required or where there is an industry accepted assessment program other than NCCER or a union, that program is used.

NOTE: For assessments not yet developed by NCCER, it is expected that employees will be assessed within one year after the assessment becomes available. 1) Skills assessment results in a training prescription and upgrade training. 2) Skills assessments are intended for trained craft persons with typically 2 or more years of industrial experience in targeted craft. Workers with less than typically 2 years of industrial experience should be enrolled in an approved training program that will prepare them for certification.

Methodology Terms 4. Approved Craft Training – Defined as National Center for Construction Education and Research (NCCER) standardized craft training curriculum (a.k.a. Contren) or Department of Labor (DOL) Bureau of Apprenticeship Training program, or the certification process for welders per section IX of the ASME code (or other recognized standard), or specialty training and/or certification provided by other organizations including the employer of the craft person is acceptable when this type of training and/or certification is not provided by NCCER. 5. A Certified Craft Person in the Greater Baton Rouge area, as defined and agreed to jointly by GBRIA and the ABC Pelican Chapter is: One who has relevant craft work experience as detailed in TABLE 1 and has been certified by one of the following processes: NCCER Certified Plus A. Met cut score on the written assessment in his or her craft B. Successful completion of the performance verification OR Certification process for welders per section IX of the ASME Code or other recognized industry standard OR Specialty and union training and/or certification provided by other organizations including the employer of the craft person, is acceptable when this type of training and/or certification is not provided by NCCER (i.e., refractory worker, lineman, fiber optic technician, heavy equipment operator, etc.)

TABLE 1 Relevant Years of Work Experience/Craft 2 2 4 3 4 2 3 4 2 4 4 4 3 2 3 2 4 4 3

Craft Concrete Finisher Hydroblasting Technician Industrial Boilermaker Industrial Carpenter Industrial Electrician Industrial Insulator Industrial Ironworkers Industrial Millwright Industrial Painter Industrial Pipefitter Instrumentation Fitter Instrumentation Technician Mobile Crane Operator Reinforcing Iron & Rebar Worker Scaffold Builder Refractory Worker Lineman Fiber Optic Technician Heavy Equipment Operator Tank Fitter

6. Certified Union Craft Person– defined as one who has reached Journeyman status.

7. Craft Person(s) – All construction, maintenance, and repair crafts. This includes laborers, helpers and working supervision.

8. Formal Training and Curriculum– Training and curriculum refers to either the National Center for Construction Education and Research (NCCER) or other industry recognized standard or other DOL approved craft training.

9. GBRIA/ABC Craft Training Partnership– When the ABC Pelican Chapter Training Center was built, industry leaders from GBRIA and contractors developed an informal agreement to pay for the school and its ongoing expenses. This agreement is still in place today 10. Number of Craft Persons– Average employment numbers for the past year; this could be the average of four quarterly measures for the past year. Numbers of field personnel includes supervision for total company and applies only to U. S. employees.

11. Past Year or Time Period for Evaluation– This evaluation covers January 2023December 2023.

12. Skills Upgrade Training– Accredited skills training that assessed craft persons take to upgrade skill deficiencies identified through skills assessments that will prepare them to retest for certification.

13. Trainees or Apprentices – Craft persons that are enrolled in craft skills training and have not completed a formal training program.

14. Uncertified Craft Person(s)– Craft persons that have completed a formal training program and/or have on-the-job training but have not achieved certified craft person status.

10. Contact Information Brandon M. Smith

Director of Safety, Workforce Development, Ops Strategy Greater Baton Rouge Industry Alliance, Inc. (GBRIA) O: (225) 769-0596, ext. 17 C: (985) 551-0660 E: brandon@gbria.org

Zach Gremillion

Business Analyst Greater Baton Rouge Industry Alliance, Inc. (GBRIA) O: (225) 769-0596, ext. 14 C: (225) 205-0156 E: zachgremillion@gbria.org