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. i 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 iii iv 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 4 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% 6 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