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Presentation - Partnership for Learning

Pacific Northwest National

Laboratory

Partnering and Investing in the Next Generation

MIKE KLUSE

Laboratory Director

September 11, 2013


Battelle’s purpose

• Invest our knowledge, talents and resources to help

our customers achieve their most important goals

• Solve significant challenges by applying scientific rigor and creativity

• Give back to our communities, making the world better

for generations to come

1


We are targeting all phases of the education

pipeline from elementary school to high

school, post-grad and educators

Washington State

LASER

• 15 years

• $65M investment

‒ Battelle ~ $2.5M

‒ PNNL ~ $2.5M

‒ Others ~ $60M

Delta High School

• 5 years

• $8.4M investment

‒ Battelle ~ $1.5M

‒ PNNL ~ $1.6M

‒ Others ~ $5.3M

Work-Based

Learning

• High School

• Undergraduate

• Graduate

• Post-grad

• Educators

2


Pacific Northwest National Laboratory:

Mission-Driven Science and Solutions

FY12 Facts

Employ more than 4,400

scientists, engineers and

non-technical staff

Partner with 2,000+ users

and visiting scientists

Manage $1B research

expenditures

3


GREAT JOBS WITHIN OUR REACH

Solving the problem of Washington state’s

growing skills gap

March 2013


Copyright © 2013 by The Boston Consulting Group, Inc. All rights reserved.

WA has great jobs; it doesn't have skilled workers to fill them

Filling the skills gap is worth an incremental $1B+ to WA

2012 2017

Rationale

Large number of

unfilled high skill jobs

in WA...

...which, if filled, would

have even larger impact

on employment

... reduce

unemployment

25,000 50,000

65,000 160,000

0.5-1% 1-2%

• Demand for high-skilled workers expected to far

out-strip supply

• Skills gap >80% STEM today (90% by 2017)

• Universities unable to provide sufficient supply

• Estimates range from 2-4 incremental jobs

created for each STEM/ healthcare job in WA 1

• 1/3 of all jobs created drawn from unemployed

population

... generate significant

state revenue annually

$300M $800M

• Estimated $5K in state and local tax revenue

generated on average per job created 1

... and unemployment

benefit savings

$130M $350M

• Estimated $7K in savings per worker taken off

unemployment

The skills gap and its impact is likely even greater, since this estimate does not take

into account jobs recently moved out of state or under-skilled workers in role

1. Based on "Washington's Prosperity Depends on Vibrant Tech Sector" Washington Research Council Economic Profile (2012); WA revenue impact includes both Local and State taxes

across all types of taxes; Note: weighted average tax contribution based on the mix of skill shortage in 2017; 350M in unemployment benefit savings, 80M in local taxes in 2017

20130321 Presentation for the WA-RT dinner -vf.pptx 5


Copyright © 2013 by The Boston Consulting Group, Inc. All rights reserved.

We estimate Washington state has an acute skills gap

shortage of ~25K jobs today, growing to ~50K in 2017

Projection of total unmet skill shortages vs. Annual supply of talent

# of jobs ('000)

150

Total potential employment

100

25

29

34

39

44

50

Shortage

International Immigration net supply

National Immigration net supply

50

In-state supply

0

2012

2013

2014

2015

2016

2017

Today

Adding to the acute shortage 5,000 a year

Note: Gap growth based on projected supply-demand imbalance for computer science, healthcare and engineering roles only

Source: CPS survey 2012, BCG analysis

20130321 Presentation for the WA-RT dinner -vf.pptx 6


Copyright © 2013 by The Boston Consulting Group, Inc. All rights reserved.

Supply channel faces multiple capacity bottlenecks and

consequently have varied action-to-impact lag times

Three supply channels to address the skills gap

STEM students at

colleges and

universities

High

Potential K-12

students

interested in and

prepared for

STEM

disciplines

In-state talent

to address skills

gap

Level of control

WA state has

Share of national

talent

in-flow

National talent

to address skills gap

Skills Gap

Low

International talent to

address skills

gap

7-

10yrs

3-

4yrs

Time from action-to-impact

1-

2yrs

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Copyright © 2013 by The Boston Consulting Group, Inc. All rights reserved.

No silver bullet exists, but five actions taken concurrently

can address majority of the skills gap

1

Increase STEM throughput

and capacity at university

• Increase university capacity in CS, Engineering and

Healthcare degrees through increased funding and

innovative delivery

WA in-state capacity

2

Drive STEM interest &

performance in K-12,

increase university

capacity further

• Increase access to foundational and advanced STEM

education

• Create mechanisms/ incentives to attract and develop

high quality STEM teachers

3

Align technical degree/

certificates curriculum

with employer demands,

add nursing capacity

• Reward community colleges for high-graduation

rates, high-employability of graduates

• Encourage private co-op programs to increase

relevance of curriculum

National migrants

International immigrants

4

5

Promote and enable

inbound state migration

Support expansion of

international immigration

opportunities

• Promote WA State as a great place to live and work –

and as an employment hub for STEM jobs

• Connect and attract out-of-state candidates to SMBs

in WA

• Ensure the issue of higher cap for H-1B Visa for highskills,

higher education jobs is high on the agenda of

congressional delegation

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Copyright © 2013 by The Boston Consulting Group, Inc. All rights reserved.

Potential supply of talent from each policy area

Action

Current annual

supply

Increased annual supply

towards skills gap

Rationale

1

2

Increase university CS & ENG

throughput and capacity

Increase Health throughput and

capacity

Drive STEM interest & performance in

K-12, then increase university CS and

ENG capacity further

2,700 1 1,200-3,600 Low : Total estimated denied qualified

applicants across top 3 universities

High : Denied qualified applicants across all

universities + further shift from other majors

1,400 2 400-1,400 Low : Clinical placements constrain

programs; can only expand by ~25%

High: Denied qualified Nursing / MD

candidates

63,200 4 600-3,000

Low: Additional 1% of public high school

graduates become interested and able to

pursue CS / ENG

High: Additional 5% pursue CS / ENG

3

Align 2yr degree, certificate and

apprenticeship curriculum with

employer demands, add nursing

capacity

10,500 3 800-1,500

Low: 25% of students shifted from low to

high demand degrees

High: 50% of students shifted

4

Promote and enable inbound state

migration

47,000 5 (Inflow)

2,700 (Net)

2,000-3,000

Low: Attract additional 4% of migrants

High: Attract additional 6% of migrants

5

Support expansion of international

immigration opportunities

14,000 6

(Inflow)

700-1,400

Low: Allow additional 5%

High: Allow additional 10%

Total 5,700-13,900

1. Public and private bachelor's degree and higher 2. Public and private bachelor's and higher BSN and MD degrees 3. Graduates in fields with below average unemployment 4. Public high

school graduates only 5. Inflow of out-of-state migrants with bachelor's degree or higher 6. Inflow of international migrants with bachelor's degree or higher, 7. assuming shift in capacity at

universities not net increase of total capacity at university

20130321 Presentation for the WA-RT dinner -vf.pptx 9

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