Industry Partnership Talking Points

Industry Partnership Talking Points

As the economy recovers, it’s time to speed-up PA’s upskilling initiatives and training for the future

Pennsylvania’s Industry Partnerships have broad bipartisan support: In 2011, both PA legislative chambers passed the Industry Partnership bill (SB 552) unanimously and Governor Corbett signed the bill into law

Pennsylvania’s Industry Partnerships (IPs) are working—connecting workforce education and training programs to the critical needs of industry

o Partnerships identify common industry skill needs and communicate those needs to training partners, including colleges and high schools

o More than 6,300 businesses are actively involved in IPs with more than 100,000 workers trained since 2005

The flexibility of employer-driven Industry Partnerships can help Governor Corbett achieve the workforce priorities in his 2012-13 budget

o The Governor highlights the need for workforce programs to be employer driven and Industry Partnerships provide a proven way to accomplish that goal

o Industry Partnerships are a cost-effective way to implement the Governor’s proposals to help the unemployed return to work more rapidly, establish training opportunities in new industries, and provide training in certificate programs in targeted industries

o IPs can also help achieve better coordination among state agencies, integrating multiple funding streams into services that benefit businesses and workers

IPs increase the ROI (return-on-investment) from all public and private education and training investment

o A new study found that businesses participants in Industry Partnerships saw a more than 400% return on partnership investment (online at http://www.joincollaborative.org/wp-content/uploads/2012/03/JOIN_ROI_Exe... )

o 84 percent of participating businesses report that Industry Partnerships and training have helped them significantly increase their productivity

o By giving vocational educators, community colleges, and other trainers solid intelligence on industry needs, Industry Partnerships increase the value of education and training

State funding for IPs has consistently and dramatically decreased

o Pennsylvania’s funding of IP administration and training activities has declined from $20 million to $1.452 million – a reduction of over 90%

o Due to the lack of state support, only 39 IPs received funding for training in 2011-2012

o The number of workers trained by IPs has fallen from a high of 25,387 in 2007-2008 to 18,628 in 2010-2011

Senator Brubaker's Industry Partnership tax credit (Senate Bill 1460) will encourage a powerful public-private partnership to fund a 21st century skills infrastucture

o SB 1460 would create a tax credit for businesses that contribute to IPs

o SB 1460 would allow businesses to claim 75% of their contribution to IPs (excluding contributions that serve as match for grants from the state)

o SB 1460 provides a stronger incentive for businesses to participate in the IP program while increasing their investment in their employees

Business leaders in Pennsylvania support Industry Partnerships

o "Pennsylvania's Industry Partnership initiative has become a national model of excellence in workforce development strategies," said Pennsylvania Business Council President and CEO David W. Patti. "The business community strongly supports the program because it addresses critical workforce shortages in key industrial occupations through the voluntary collaboration of employers in similar industries or product lines, or which share supply chains, often cooperating with the associated organized labor unions. IPs work."

o Robert C. Wonderling, Chairman of the Greater Philadelphia CEO Council for Growth wrote recently, “Our organization recognizes the unprecedented contribution Industry Partnerships have made to Pennsylvania businesses and industries."

Pennsylvania's national model Industry Partnership strategy should be strengthened to become a source of sustainable competitive advantage

o The Governor and his Manufacturing Advisory Council can use Industry Partnerships in manufacturing to help Pennsylvania ride the "reshoring" wave to greater competitiveness and more middle-class jobs

o Pennsylvania is using Industry Partnerships as the foundation of a practical new anti-poverty strategy that also helps business: Pennsylvania has the only statewide project, led by the United Way of PA, that leverages philanthropic dollars to help low-income workers access family supporting careers in Industry Partnership employers.

o Pennsylvania's Industry Partnership strategy was the model for the national Sectors Act, sponsored by Representative Todd Platts (R-York/Cumberland), which passed the U.S. House of Representatives unanimously in 2011.