Workforce Development - A Good Investment?

To stimulate our workforce, new industries will be needed

We will need 15-18 million new jobs in the next five years, just to get back to where we were only a few years ago. Without the creation of whole new industries, that is not going to happen.

Nearly 20% of Americans are not paying anywhere close to the amount of taxes they paid a few years ago, and at least ten million are now collecting some kind of unemployment benefits or welfare.

But new industries require capital, and the conventional capital markets are not lending in order to meet market needs.

Used to be, there was a simple formula for bankers called the 3-6-3 rule; Bankers would give 3% interest on depositors' accounts, lend the depositors money at 6% interest and then be playing golf at 3pm. Lately however, these depositors have been getting a bit troublesome - overextended, not paying according to terms agreed upon, and that sort of thing.

So the banking industry, always sensitive to avoiding risk, (and looking at a way to recapitalize themselves amidst mountains of toxic loans and investments), have found a new approach, which has been enabled by our friends at Treasury.

Borrow money from the Feds at 0%, buy Treasuries that pay 3%, and VOILA ! be back on the golf course at 3pm.  Isn't it wonderful how all things old become new again.

Oh, I forgot about that "new industry" stuff, didn't I?

Yes, new capital infusion will be needed to get some new industries going, and it's anyone's guess where THAT will be coming from (new ventures are risky, so there are always the equity markets, VCs and such)

The challenge I see is that in addition to all of the new capital that will be needed to launch new industries, we likely will continue to see workforce reductions in the foreseeable future as existing firms cut back and shut down due to lack of operating / growth capital.

So maybe this issue is a lot bigger, and more complex than any one is willing to talk about?

Why the "Green Collar" jobs are likely here to stay

The American Solar Energy Society reports that by 2030 one in four workers will be wearing green collars at work. The report estimates the creation of up to 40 million green collar jobs in the renewable energy and energy efficiency industries.   Sounds promising, but is it real?

There is still some confusion though about what constitutes a "green collar" job and whether these jobs will survive the current eco-focused political climate.  

Van Jones, author of the book "Green Collar Economy" says that most green-collar jobs are middle-skill jobs. That means they require more education than high school, but less than a four year degree. These jobs are within reach for lower-skilled and low-income workers, as long as they have access to effective training programs. These jobs are the first step on a pathway to economic self-sufficiency. 

He positions "Green collar" installer jobs as the 2.0 version of old-fashioned blue-collar jobs, upgraded to respect the Earth and meet the environmental challenges of today. Green collar jobs are not high-tech and futuristic. The emerging green economy is not about George Jetson with a jet pack, but rather Joe Sixpack, with a hardhat and a lunch bucket, ready to install solar panels in every home in his neighborhood. The most important piece of technology in the green economy, according to Jones  will be a caulk gun.

Remembering that of the Green Jobs, which cut across many domains, that the Green Collar jobs that he speaks of are specifically referencing the people who install and service these new energy efficient upgrades for homes and businesses.  There are lots of other "Green" jobs that are included in the American Solar Energy count that do require different skills.

But remember, that the Green Jobs Act is intending to increase the number of the "Green Collar" installation and service jobs that of necessity, require manual labor, and can't be outsourced, from a practical sense.

Will these jobs be around for a while?  Consider this: This type of work is difficult if not impossible to outsource. You can’t pick up a house, ship it to China to have solar panels installed, and then have it shipped back.  

Unfortunately, there is not, as one might expect, a generally accepted definition of what a "green job" is.  Jones comments: "Well, we still don’t have a unified definition, and that’s not unusual in a democracy. It takes a while for all the states and the federal government to come to some agreement. But the Department of Labor is working on it very diligently. Fundamentally, it’s getting there, but we haven’t crossed the finish line yet."

Now I'd like you to consider that Van Jones also is a noted pioneer in this area, having worked successfully with Congress to pass the Green Jobs Act of 2007. You'd think that he might be somewhat of an authority in this area, maybe someone that policymakers might want to have deeply involved in this important effort?  Maybe he is a voice we should be listening to, and possibly get this movement going a bit quicker?  

I guess only time will tell....

Am I the only one confused by all of these "Green" designations?

GRI, FSC, CERES, CCAR, LEED....what do they all mean? In the last two years, demand for "green"   certifications has exploded, now everyone wants to be green!

How do you know which 'green credential' Which is right for you?  And, how do you know which vendors are offering truly 'green' services and products?

Am I the only one asking this question, or are some of you likewise thinking the same thing?  Let me know what you think, and what you've discovered?

How Many Stimulus Jobs Will Be Green? (And Who Will Get Them?)

One of the key questions floating around today is how many jobs will be created by Recovery Act spending?  And who will benefit the most?

The Economic Policy Institute estimates $200 billion in construction spending over 2 years will create 770,000 jobs in:

• Transportation infrastructure
• School retrofit
• Electric power grid
• Home Weatherization Assistance Program
• GSA federal building retrofit
• Public and affordable housing

Most of these jobs unfortunately will go to men, not women, if the current workforce composition is any guide:

Women in construction overall (non-office) -- 2.6%

• Construction laborers – 2.7%
• HVAC, Refrigeration – 0.9%
• Plumbers, pipefitters, steamfitters  – 1.5%
• Electricians – 1.7%
• Insulation workers – 1.9%
• Sheet metal workers – 3.7%

Women in Manufacturing:  Machinists – 5.2%  

Despite the promise of new jobs, female employment in the construction trades (as well as Engineering) are only a fraction of the male participation in the labor pool.  Because of this, most women may miss out on the windfall resulting from the ARRA stimulus funding in Green construction.

  

What's happening with creation of "Green Jobs"?

Ben Hecht, CEO of Living Cities recently commented on the progress of the "Green Cities" initiative, in an article entitled "Who's Missing in the Big 'Green' Conversation?" that appeared in the Huffington Post. 

Mr. Hecht is an experienced nonprofit executive, author and social entrepreneur. He was appointed President & CEO of Living Cities in July, 2007 to lead the organization’s new and ambitious agenda to transform the lives of low-income people as well as the urban neighborhoods in which they live.

Among the highlights of his observation he offers that the emerging green economy provides us with unprecedented opportunities -- from lowering energy and transportation costs to creating jobs with meaningful career ladders. In order for this to happen, however, we must intentionally build a "gateway" that connects low-income people and the places they live to these opportunities.

America's cities are uniquely positioned to be those gateways. They are home both to large numbers of low-income people, and to the primary source of global warming -- greenhouse gas emissions. In fact, urban areas account for approximately 75 percent of all energy use and greenhouse gas emissions in the world, with more than half of that coming from buildings.

The emerging green economy provides us with unprecedented opportunities -- from lowering energy and transportation costs to creating jobs with meaningful career ladders. In order for this to happen, however, we must intentionally build a "gateway" that connects low-income people and the places they live to these opportunities.

The article goes on to discuss significant initiatives that have been taken by Philadelphia, where the city and Living Cities are working together to convert the "smoke and mirrors" stigma of "green" into a real green economy that includes formerly marginalized people - people who can be the backbone of the new green economy, and have funded a $250,000 Green Workforce Development Grant to get it started.

If ytou want to see where some of these new "green" jobs will materialize, you'll want to read this article in its entirety.  This is just one city taking an intentional leading role to ensure that green doesn't disregard a critical element: the people who can really build it.

Can you picture yourself in a "Green collar" job?

Many people are tired of their jobs and know they want to give back to the environment, but have no idea where to look for a green-collar job. That's where consultants such as Marie Kerpan can help out. Weary of her own job as a career adviser at New York outplacement firm Drake Beam Morin (DKBMF), and anticipating the looming trend of green career-changers, Kerpan in 2000, positioned herself as an environmental career consultant—the first, she claims, of her kind.

Since then, her company, Green Careers, has helped thousands of people assess what cause their skills and interests are best suited to—which could be anything from renewable energy to water conservation—and has helped them get hired. Most of her clients come from middle management or higher, and are seeking what she calls a path-of-least-resistance move, "doing something you already know how to do and putting it in the context of the green agenda," she explains.

One former human resources manager at General Electric (GE), for example, had "a whole kitbag of tools, and just had to figure out how to use them" in a green job. The solution was simple enough: She landed a post as human resources manager at an organic foods company.

Is a green collar job in your future?

What is the future for Green Jobs?

Renewable energy and energy efficiency (RE&EE) technologies continue to drive significant economic growth in the United States. In 2006, these industries generated 8.5 million jobs, nearly $970 billion in revenue, more than $100 billion in industry profits, and more than $150 billion in increased federal, state, and local government tax revenues. Additionally, RE&EE provided important stimulus to the beleaguered U.S. manufacturing industry, displaced imported oil, and helped reduce the U.S. trade deficit.

In 2007, the news was even better. RE&EE generated more than 9 million jobs, more than $1 trillion in revenue, and nearly $160 billion in federal, state, and local tax revenues.

To put this in perspective, RE&EE sales outpaced the combined sales of the three largest U.S. corporations. Total sales for Wal-Mart, Exxon- Mobil, and General Motors in 2007 were $905 billion.

If U.S. policymakers aggressively commit to programs that support the sustained orderly development of RE&EE, our national prospects look even brighter. According to research conducted by the American Solar Energy Society (ASES) and Management Information Services, Inc. (MISI), the renewable energy and energy efficiency industry could—in a crash effort—generate up to $4.3 trillion in revenue in the United States and create more than 37 million jobs by the year 2030. These 37 million jobs would represent nearly one out of every four jobs in 2030, and many would be jobs that could not easily be outsourced. 

Joe the Plumber's Job is Starting to Look Darned Attractive

This past week I was reading a piece that appeared in Parade magazine looking at the potential for  jobs creation due to the Green Building initiative.

The article cited a report from the U.S. Conference of Mayors says the “green economy” could create 4.2 million jobs in the next 30 years. More than 3 million would come from a switch to renewable power and alternative fuels. 

What was no big surprise to me was that it confirmed that “It’s Joe Six-Pack with a hard hat and a lunch bucket, ready to install solar panels.” It went on to prophesy that retrofitting old buildings to meet environmental standards could replace many of the 800,000 construction jobs lost recently. 

Right now, the most green jobs—including environmental lawyers, consultants, and engineers—are in New York City, Washington, D.C., and Houston.  The article points out that many of the new green jobs that are being created don’t require a college degree—only access to training programs. 

But that's soon to change, as the "hands-on" Green building takes place

Consider the change over the past 10 years where science, techology, MBA's, law and upper management were the way to make big bucks and have security.  Today it's not unusual to hear people in the trades that are sustaining 6 figure incomes, with lots of job security, and great benefits.

At a time when tech giants are offshoring any job they can, and relegating much of their US workforce to contingent staffing firms who provide workers on a project by project basis, is it any wonder that Joe the Plumber's job is starting to look more attractive than ever before?Joe the plu

Engineers empowered towards Design for Sustainability

Design engineers are more aware of the world in which they live than the average person; they have a better appreciation of the resources that are required to manufacture products and of the finite nature of the world’s resources. 

Most have also now formed an opinion about how urgently man-made climate change needs to be tackled.

Yet design engineers and design managers may feel there is little they can do to make a difference within the constraints of their day-to-day work activities, that it is more a question of governments legislating and consumers being educated to change their behavior.  Find out why...

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Is Sustainability a Buzz Word or Call to Action?

Christine M. Fiori, PhD, PE director of professional and academic outreach at Myers-Lawson School of Construction at Virginia Polytechnic Institute, writes for ENR and several other industry publications.

A recent article on her blog asks a relevant question:
Sustainability – Buzz Word or Call to Action?

You hear it everywhere - Sustainability, going green, greenage, LEED, Eco Friendly, Eco developed, Green this and Green that.....pick your title.

But is the industry committed to Sustainable design and development, or just paying lip service as a way to snag "green projects", or put another way, going through the motions, without changing your "party" affiliation?

There is another issue that like it or not, must be addressed.  Being really "green" is more than changing your focus, it's changing your attitude, and that means rethinking how the organization thinks - for "green" requires a unprecedented level of collaboration, dialog, negotiation that goes far beyond what is involved in the "narrower" context of the AEC community.

Further, as Dr. Fiori points out, it requires a transformation of the way AEC professionals are educated.  Raising the question - when does the transformation of thinking need to begin?  Is college early enough, or should the molding of minds into a "green" attitude need to start earlier (K-12)?