Operating results (Georgia. Quick Start)

Report from the Assistant Commissioner, Economic Development Programs

Jackie Rohosky,
Assistant Commissioner, Economic Development Programs

This report covers Quick Start and the contract and customized training delivered through Economic Development Programs at Georgia's 34 technical colleges.
Fiscal Year 2001 (which ended June 30, 2001) was another busy year at Quick Start. Once again, we set new records for number of projects (296) and number of trainees (39,416). Quick Start works with all types of companies in all areas of Georgia. Nearly three-quarters of Quick Start's projects were in areas outside of metropolitan Atlanta. Our experience, outstanding service, and business approach make Quick Start a very attractive incentive for companies that are creating jobs in Georgia. Furthermore, Quick Start has directly benefited thousands of Georgians by providing them with relevant, comprehensive, timely workplace training.
Here are some highlights from Quick Start's Fiscal Year 2001:
The number of Quick Start projects increased 6.1 percent from 279 projects in FY 00 to 296 projects in FY 01. 52 percent of Quick Start's projects were in the rural areas of Georgia. The number of Quick Start trainees during FY 01 increased by 10.7 percent over FY 00 to 39,416. International firms accounted for 22 percent of Quick Start projects (65 total). Most of these companies were from Japan, the United Kingdom, and Canada. Return on investment: Quick Start participated in the creation of 32,640 direct and indirect new jobs in the state of Georgia during FY 01.
Highlights from Fiscal Year 2001 for customized training:
During FY 01, the state's technical colleges delivered 1,090,400 hours of customized training. They delivered 5,866 courses. 1,271 companies and 64,041 trainees were served.

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ii

R Operating Results FY 2001

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Quick Start
Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Number of Projects 1990 through 2001 New and Expansion Projects Projects by Industry Type
Trainees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Number of Trainees 1990 through 2001 Trainees by Industry Type New Jobs New Jobs by Industry Type
Geographic Distribution . . . . . . . . . . . . . . . . . . .6
Project Distribution Metropolitan Statistical Areas and Rural Areas Projects Outside Atlanta Metropolitan Statistical Area Jobs Created Manufacturing Industries and Service Operations Distribution
International Companies . . . . . . . . . . . . . . . . . .8
Number of International Companies 1988 through 2001 International Company Projects
Return on Investment . . . . . . . . . . . . . . . . . . . .9
Direct and Indirect New Jobs Created by Quick Start Clients Cost per Trainee Versus Number of Trainees
Continuous Improvement . . . . . . . . . . . . . . . . .10 FY 01 Quick Start Evaluation Summary Customized Training Delivered through Economic Development Programs Customized Training . . . . . . . . . . . . . . . . . . . . .12
Hours Trained Number of Trainees Number of Courses
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R Operating Results FY 2001

Introduction

Since 1967, the Georgia Department of Technical and Adult Education's Quick Start training program has served as an economic development incentive for companies to locate or expand in Georgia. From the beginning, Quick Start has grown steadily each year. In FY 01, Quick Start provided training for 296 projects involving 39,416 trainees. To date, more than 3,700 companies and 390,000 people have benefited from Quick Start's training services.
A direct training service provider, Quick Start provides training services free-of-charge to companies creating jobs in Georgia. The training services are extensive, high quality, and comprehensive. Quick Start is recognized internationally as one of the most effective, responsive, and business-like training organizations in the country, offering considerable experience and expertise in the design, development, and delivery of training.
Quick Start provides training that is customized to our client companies' unique requirements. Quick Start also provides quality and productivity-enhancement training, employee-involvement training, instructor training, and customer service training. Some examples are Lean Manufacturing, Statistical Process Control, Total Productive Maintenance, Programmable Logic Controllers, Team Skills, High Performance Leadership, ISO 9000, and QS 9000. In addition, Quick Start has an Organization Development/ Performance Consulting Group to assist companies (senior management) in designing and developing an efficient and effective organizational structure.
The Quick Start approach is organized, systematic, and business-oriented. First, a training needs analysis is conducted that provides an in-depth assessment of a company's specific training needs. A team of Quick Start training specialists systematically analyzes each job classification through process observation and consultation

with company personnel at the company's designated location. Quick Start's team is led by an experienced, certified training specialist.
A written training plan is then developed. It includes training schedules, job classifications and required competencies, training requirements, training deliverables, and training personnel requirements. All training is accomplished to the company's standards and schedules. Training may be conducted for both pre-employment and post-employment in accordance with company needs. Appropriate training technologies are used and may include job aids, video productions, training manuals, trainer guides, simulations, transparencies, multimedia-based training, and others. Training evaluations are conducted during the training process and at the end of the project.

Technical Colleges The Economic Development

Technical Colleges Satellite Campuses Technical Divisions

Programs divisions

of Georgia's 34

technical colleges

and four participating

colleges in the

university system not

only function as the

principal project

management and

training liaison for

Quick Start projects, but they also provide a

wide range of customized training programs for Georgia's

businesses and industries. The technical colleges served

an additional 64,041 trainees during FY 01. Through

these cost-recovery services, the technical colleges meet

the needs of Georgia's companies and residents statewide.

Introduction

1

Projects

From 2000 to 2001, the number of Quick Start projects increased from 279 to 296. Of the 296 projects, 121 were with new projects and 175 were expansion projects. FY 01 is the ninth consecutive year in which the number of expansion projects exceeded new projects.

Number of Projects 1990 through 2001

Number of Projects

300

296

275

250

225

200

175

150

125

100

75

50

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Fiscal Year

2

R Operating Results FY 2001

New and Expansion Projects

Number of Projects

200

180

175

160

140
120 121

100

80

60

40

20

0

New Projects (41%)

Expansion Projects (59%)

Projects by Industry Type
Transportation equipment, plastics and rubber products, warehouse/distribution, and machinery manufacturing accounted for 46 percent of FY 01 projects.

Industry

Projects

Transportation Equipment*

42

Plastics/Rubber

35

Machinery Manufacturing

29

Warehouse and Distribution

29

Electrical Equipment and Appliances

21

Metal Fabrication

21

Service Operations**

20

Food and Beverage Products

17

Miscellaneous Manufacturing

13

Paper Products

11

Furniture

10

Chemical

8

Wood/Wood Products

8

Textile Product Mills

7

Primary Metal Manufacturing

6

Printing

6

Textile Mills

5

Apparel

2

Computer and Electronic Products

2

Aircraft Maintenance

1

Gravel Mining

1

Non-Metallic Mineral Product Manufacturing

1

Petroleum Products

1

Total

296

* The Transportation Equipment category includes automotive, aviation, ships, and miscellaneous transportation equipment.
**The Service Operations category includes call centers, headquarters operations, investment and securities companies, and processing centers.

Projects

3

Trainees

The number of trainees for new and expanding companies increased by 3,803 (10.7 percent) this year, from 35,613 in FY 00 to 39,416. This is a duplicated training count. Due to the complexity of today's jobs, most employees require training in multiple skill tracks. This year's number of trainees set another record for Quick Start.

Number of Trainees 1990 through 2001

Number of Trainees

40,000 37,500 35,000 32,500 30,000 27,500 25,000 22,500 20,000 17,500 15,000 12,500 10,000
7,500 5000

39,416

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Fiscal Year

Trainees by Industry Type
Service operations, electrical equipment and appliances, and machinery manufacturing accounted for 46 percent of all Quick Start trainees in FY 01.
* The Service Operations category includes call centers, headquarters operations, investment and securities companies, and processing centers.
**The Transportation Equipment category includes automotive, aviation, ships, and miscellaneous transportation equipment.

Industry
Service Operations* Electrical Equipment and Appliances Machinery Manufacturing Warehouse and Distribution Paper Products Metal Fabrication Transportation Equipment** Miscellaneous Manufacturing Plastics/Rubber Wood/Wood Products Chemical Primary Metal Manufacturing Textile Product Mills Printing Food and Beverage Products Mining Furniture Petroleum and Coal Products Mfg. Textile Mills
Total

Trainees
8,391 5,721 4,143 3,306 3,119 3,088 2,729 2,071 1,902 1,763 1,058
970 465 228 227 140
57 24 14
39,416

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R Operating Results FY 2001

New Jobs
In FY 01 there were 276 manufacturing projects out of a total of 296. In addition, there were 20 service operations projects, but these service projects accounted for 24 percent of the total new jobs created.
Manufacturing Industry
276 Projects = 7,287 Jobs
Service Operations
20 Projects = 2,313 Jobs

New Jobs by Industry Type
Service operations, warehouse and distribution, and electrical equipment and appliance manufacturing created nearly half (48 percent) of the new jobs that were created by all Quick Start clients.
* The Service Operations category includes call centers, headquarters operations, investment and securities companies, and processing centers.
**The Transportation Equipment category includes automotive, aviation, ships, and miscellaneous transportation equipment.

Industry
Service Operations* Warehouse and Distribution Electrical Equipment and Appliances Transportation Equipment** Food and Beverage Products Plastics/Rubber Paper Products Machinery Manufacturing Miscellaneous Manufacturing Textile Mills Textile Product Mills Printing Wood/Wood Products Metal Fabrication Chemical Primary Metal Manufacturing Furniture Petroleum and Coal Products Mfg. Mining
Total

New Jobs
2,313 1,329
942 774 725 623 574 544 409 290 278 176 153 152 122 100
51 29 16
9,600

Trainees

5

Geographic Distribution

Project Distribution
More than half of Quick Start's projects and more than 40 percent of trainees were with companies in rural Georgia.

Metropolitan Statistical Areas (MSAs) and Rural Areas
Albany Athens Atlanta Augusta Columbus Macon Savannah Rural

Projects Outside Atlanta Metropolitan Statistical Area
Three quarters of Quick Start's projects were located outside of the Atlanta MSA.
Metropolitan Atlanta
82 Projects (28%)
All Other Georgia 214 Projects (72%)

MSA # of Projects %

Albany

7

2.4

Athens

7

2.4

Atlanta

82 27.7

Augusta

16

5.4

Columbus 12

4.1

Macon

9

3.0

Savannah

9

3.0

Rural

154 52.0

Total

296 100.0

Projects
Rural MSAs 52% 48%

MSA # of Trainees %

Albany

47

0.1

Athens

65

0.2

Atlanta 12,125 30.8

Augusta 1,831

4.6

Columbus 3,244

8.2

Macon 2,062

5.2

Savannah 3,607

9.2

Rural 16,435 41.7

Total 39,416 100.0

Trainees
Rural MSAs 42% 58%

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R Operating Results FY 2001

Jobs Created

Quick Start clients created 9,600 direct new jobs in FY 01. Rural Georgia claimed almost 32 percent of those jobs.

MSA

# of Jobs %

Jobs

Albany

454

4.7

Athens

44

0.5

Atlanta 3,781 39.4

Rural 32% MSAs
68%

Augusta 388

4.0

Columbus 514

5.3

Macon 1,140 11.9

Savannah 240

2.5

Rural 3,039 31.7

Total 9,600 100.0

Manufacturing
Industries and
Service Operations
Distribution
Manufacturing includes typical manufacturing operations as well as warehousing and distribution. Service operations include call centers, headquarters operations, investment and securities companies, and processing centers.

FY 01

New

Expanding International Domestic

MSA Projects Jobs Created Companies Companies Companies Companies

Albany 7

454

1

6

0

7

Athens 7

44

0

7

1

6

Atlanta 82 3,781

40

42

31

51

Augusta 16

388

5

11

2

14

Columbus 12

514

1

11

1

11

Macon

9 1,140

3

6

1

8

Savannah 9

240

5

4

2

7

Rural 154 3,039

66

88

27

127

Totals 296 9,600 121

175

65

231

Percentage

Percentage

Percentage

296 Projects

100 276
90 93.2%
80 70 60 50 40 30 20 10
0 Manufacturing

20
6.8%
Service Operations

39,416 Trainees

100

90
80 31,025
70 78.7%
60

50

40

30

20

8,391

10

21.3%

0 Manufacturing Service Operations

9,600 New Jobs Created

100

90

80 7,287
70 75.9%
60

50

40

30 20

2,313
24.1%

10

0 Manufacturing Service Operations

Geographic Distribution

7

Number of International Projects Number of International Companies

International Companies

Approximately 22 percent of Quick Start's 296 projects in FY 01 were with international companies.
International Company Projects
There were 65 international company projects in FY 01. Twenty-seven were new, and 38 were expansion projects.

Number of International Companies 1988 - 2001
70
65
60 50 40 30 20 10
0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Fiscal Year

International Projects

40
38
36

32
28 27

24

20

16

12

8

4

0

New

Expansion

Projects (41.5%)

Projects (58.5%)

Country of Origin
Australia Austria Belgium Canada Denmark France Germany Italy Japan Netherlands South Korea Switzerland Taiwan/ROC United Kingdom
Total

New Expansion Total

1

1

2

1

0

1

0

1

1

4

3

7

2

0

2

2

4

6

0

2

2

4

0

4

8

10

18

0

2

2

1

2

3

0

5

5

1

0

1

3

8

11

27

38

65

8

R Operating Results FY 2001

Return on Investment

Direct and Indirect New Jobs Created by Quick Start Clients
The 9,600 direct new jobs created in FY 01 generated 23,040 indirect jobs for a total of 32,640 new jobs.
Indirect and total new jobs based on Job-Multiplier Model, Economic Policy Division, U.S. Chamber of Commerce.

32,640 New Jobs Created

Number of New Jobs

30,000 27,000 24,000 21,000 18,000 15,000 12,000
9,000 6,000 3,000
0

9,600
Direct Jobs

23,040
Indirect Jobs

Cost Per Trainee

Cost per Trainee Versus Number of Trainees

Quick Start's cost per trainee was $319. There were 39,416 trainees in FY 01.

Number of Trainees

40,000

39,416

37,500

35,000

32,500

30,000

27,500

25,000

22,500

20,000

17,500

15,000

$319

12,500

10,000

7,500

5,000

2,500

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Fiscal Year

$650 $600 $550 $500 $450 $400 $350 $300 $250 $200 $150 $100 0

Return on Investment

9

Continuous Improvement

10

R Operating Results FY 2001

FY 01 Quick Start Evaluation Summary
After each project is completed, Quick Start conducts an in-depth evaluation as part of its Continuous Improvement Program. The evaluation summary includes all evaluations completed during FY 01. The scores on all evaluation components increased over the FY 00 results.
Rating Scale 5 = Excellent
(no improvement necessary; exceeded highest expectations) 4 = Very Good (company needs met at highly acceptable level) 3 = Acceptable (needs met, but some improvement indicated) 2 = Marginal (some needs satisfied; items need substantial improvement) 1 = Unacceptable (needs generally not satisfied)

Component Training Needs Analysis Training Plan Training Materials Instruction Training Program Management

Rating 4.36 4.37 4.39 4.34 4.33

Positive Responses
Responses to evaluation questions were extremely positive:
Would you use the Quick Start program again if the need arose? Would you recommend the Quick Start program to other companies considering a new or expanded Georgia operation? Were you satisfied with the work performance of the trainees?

100% Yes
97% Yes 100% Yes

Continuous Improvement

11

Customized Training
In FY 01, Economic Development Programs at Georgia's technical colleges served 1,271 companies, compared to 1,217 in FY 00.

In FY 01, 1,090,400 hours and 5,866 courses of customized training were delivered through the Economic Development Programs divisions of the technical college system, serving 64,041 trainees.

Number of Hours Trained

Hours Trained
1,000,000 950,000 900,000 850,000 800,000 750,000 700,000 650,000 600,000 550,000 500,000

1,090,400

Number of Trainees

1994 1995 1996 1997 1998* 1999 2000 2001 Fiscal Year

Trainees

70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000

64,041

1994 1995 1996 1997 1998* 1999 2000 2001 Fiscal Year

* FY 98 reporting method was changed to reflect only contract training.

Number of Courses

Number of Courses

6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000
500

5,866

1994 1995 1996 1997 1998* 1999 2000 2001 Fiscal Year

12 12

R Operating Results FY 2001