Schumer: NYS Manufacturing, Nanotech & Biotech Sectors are Creating Jobs, but Companies Can't Find Enough Qualified Local Workers to Fill the positions - Pushes Legislation to Help NYS Companies Partner with Schools to Train Local Workforce

Press Release

Today U.S. Senator Charles E. Schumer announced his support for legislation that would create a federal grant program to help New York schools and workforce training agencies produce students with the necessary skills to find jobs at growing manufacturing companies, high-tech companies, biotechnology firms and more. Schumer announced his support for the SECTORS Act of 2011, which would create Department of Labor grants to help manufacturers throughout New York to work with local schools and workforce development groups to create training classes and programs to teach students the skills they need to secure jobs in manufacturing, nanotechnology and other growing industries. Often these businesses and local companies experience difficulties hiring local skilled workers, and are either forced to look outside of their region for skilled workers, or have jobs go unfilled for long periods of time.

"Rapid growth of New York's specialized manufacturing, biotechnology, and nanotech sector should go hand-in-hand with an uptick in local job creation, but a shortage of qualified local workers means that's not always the case," said Schumer. "That is why I'm announcing my support of the SECTORS Act, which would partner schools, local industry officials and other stakeholders in New York to establish specialized worker training programs so that manufacturers, high-tech companies, biotechnology firms and more can hire New Yorkers when they have an open spot. This bill would be a huge boon for New York, and help fill good-paying jobs as our manufacturers move full-steam ahead expanding and growing in the region."

The SECTORS Act is needed to help industry clusters and local businesses work with educational, workforce, and industry partners to ensure that local workforces have the skills to fill vacancies at New York companies. These companies can only do so much to ensure that the local workforce meets their hiring requirements, and the competitive funding provided through the SECTORS Act would provide schools and local industry partners with the resources necessary to train New York workers for these skilled positions. For example, this bill would help create specialized worker training programs at local schools, focused on matching unemployed New Yorkers with good-paying jobs. This could be achieved through outreach to high schools and community colleges to steer students on a training path, and by working with partners to develop a training curriculum for unemployed adults. The legislation would also help employer training agencies, partner with even more businesses to create new pathways to employment. As the economy evolves and worker needs change, companies, schools, and private groups could work together to overhaul training curricula to suit the current economy.

The SECTORS Act could also help expand recruitment and advertizing to market these job openings, develop better employee retention incentives, or expand internship and apprentice programs. Schumer stated that the SECTORS Act, originally sponsored by Senator Sherrod Brown (D-OH), would be an economic shot in the arm for the region, as it would help partner local industry, education and government leaders and encourage cooperative efforts to train the New York workforce to meet the needs of the area's growing industries.

Schumer announced his support for the SECTORS Act, after he recently visited several companies and businesses throughout New York that have experienced difficulties in hiring local skilled workers for vacant or anticipated positions. TitanX in Jamestown is a fast-growing global manufacturing company in Western New York, but often struggles to find enough qualified local workers to fill certain specialized jobs in welding, engineering, logistics and management. In June 2011, TitanX announced plans to expand its facility to meet current and expected demand, which will create 40 new positions at the Jamestown facility and the retention of 357 jobs at the site. The company is still seeking to fill some of the jobs related to the expansion, and will face another major search for employees to fill their planned 2013 expansion, which could create 50-60 new jobs. Schumer points to this expansion as an example of the type of growth that local manufacturers are experiencing in Western New York, all while experiencing major difficulties in hiring local employees. The SECTOR Act would help promote manufacturing growth and competitiveness in Western New York and to improve worker training, retention, and advancement in that industry.

In the Rochester-Finger Lakes region, ITT Goulds-Pumps employs over 1,000 workers at its Seneca Falls manufacturing center, where it manufactures quality industrial pumps and parts for the chemical, pulp & paper, mining, mineral processing, oil & gas, power, water, and wastewater industries. Optimax Systems employs 160 workers at its Ontario headquarters. Schumer points to Optimax' plan to enlarge their facility by 50% and plans to hire about 20 more people, as an example of the type of growth that local manufacturers are experiencing in the Rochester-Finger Lakes. The SECTOR Act would help promote manufacturing growth and competitiveness in Rochester and the Finger Lakes, and improve worker training, retention, and advancement in that industry.

In recent years, the Hudson Valley has become a major hub for the biotechnology industry, with investments in biotechnology firms, high-tech incubator space, and more. The biotechnology industry is expected to grow at twice the rate of other industries in the next ten years. According to a recent report, the jobs multiplier for cutting edge biotech firms is 9.2, which means that for every job at these firms, nearly 10 additional jobs are supported. According to the United States Department of Labor, the biotech industry is experiencing such rapid growth that firms demand more skilled workers than are available. The Hudson Valley has many attributes that are conducive to biotech expansion, including substantial existing infrastructure, excellent real estate opportunities, ready access to venture capital, an educated work force, and quick access to scientific and entrepreneurial talent. The SECTORS Act would unite these positive attributes to ensure that a skilled workforce is ready for the fast-expanding biotech industry in the Hudson Valley.

In the Capital Region high-tech manufacturing and nanotechnology are growing rapidly. According to the New York Department of Labor, the Computer and Electronic Product Manufacturing industry is expected to see jobs grow by 135% between 2008 and 2018. During that time period, there will be an additional 100 jobs per year created in network systems and data communications analysis, and about 80 jobs per year in computer programming. GlobalFoundries in the Capital Region is set to create over 1,600 jobs in the next several years, and possibly more if additional chip fab plants are built. General Electric already employs more than 7,000 people in the region and is expected to bring 100 new jobs to the Capital Region, with a portion of the jobs going to GE's Global Research in Niskayuna and GE's renewable energy headquarters in Schenectady. The company's wind turbine manufacturing facilities are likely to create many new jobs in the years to come. Schumer is seeking to ensure that the jobs created can be filled by Capital Region workers through his support of the SECTORS Act.

Strengthening Employment Clusters to Organize Regional Success Act of 2011 or SECTORS Act of 2011 - Amends the Workforce Investment Act of 1998 to require the Secretary of Labor to award renewable three-year competitive industry or sector partnership grants to eligible entities to develop strategies that: (1) encourage growth and competitiveness through work with employers within a targeted industry cluster; (2) help workers move toward economic self-sufficiency and ensure that they have access to supportive services; (3) address the needs of firms with limited human resources or in-house training capacity, including small- and medium-sized firms; and (4) coordinate with entities that carry out state and local workforce investment, economic development, and education activities.

Eligible entities may apply for a one year planning grant of up to $250,000 and a three year implementation grant of up to $2.5 million. Eligible entities receiving an implementation grant may apply for a $1.5 million renewal grant for an additional three years if certain conditions are met. Eligible entities must leverage increasing amounts of non-federal funding each year they receive federal funding.

Source