Workforce skills shortage an emerging problem in Northwest Arkansas

Northwest Arkansas’ economy continues to grow jobs, population and generate a robust gross domestic product, but when drilling down in the weeds, there is a looming workforce shortage reported across the region by large and small employers.

The workforce issues were at the heart of the survey findings as the Chambers of Commerce in Fayetteville, Springdale, Siloam Springs, Rogers and Bentonville made 487 visits with local employers this past year. The visits marked the third annual survey for Employer Retention and Expansion which is managed by the Northwest Arkansas Council.

The surveys look closely at employer needs, concerns and expansion expectations in hopes of working together as a region to facilitate future growth. The combined companies plan to invest $112 million in the region over the next three years as one in five companies surveyed cited planned expansions. No detail was provided about the investment intentions. (Link here for a PDF version of the report.)

The cohort also plans to hire 1,541 workers in the next three-year period, which is roughly the same projections made a year ago. The 3-year job creation expectation is up from 965 reported in 2013.

“It will be interesting to see at the end of this year how many of those projections made in 2013 will have resulted in actual job creation in the three-year period. We know there has been steady job creation since mid-2012 in Northwest Arkansas ahead of the rest of the country,” said Michael Harvey, chief operating officer for the Northwest Arkansas Council. 

One eye-opening metric unveiled by the smaller employers this year as well as large manufacturers is the shortage of a qualified workforce to many entry-level positions going unfilled. Harvey said the shortage has been well-documented but this survey found that needs were more deficient at the community level than the industry at large.

K-12 SOLUTIONS
“We have to do a better job with K-12 education offering more vocational training. There is some good work underway, but more is needed. K-12 is going to be the biggest solution to this problem long term,” Harvey said.

Barry Knight, a vocational tech teacher at Rogers Heritage High School, said it’s an uphill battle. He has spent the past 17 years training high school students with the skills needed to assume steady work earning between $12 and $17 an hour in local industry immediately upon high school graduation. Knight spent two decades working in the manufacturing industry after he obtained a degree in education.

“I took a pay cut to teach, but it’s something I always wanted to do,” Knight said.

He has 70 students in his career tech classes which require a two-hour block. Seven are seniors and there are 40 in the entry level class. Knight said he has most of the students for two years and some for a third year. The students get practical application skills in computer drafting, robotics and basic machinist training. 

Knight said the program also qualifies for between six to nine hours of engineering school credit through Missouri Southern University if the students have the required score of 22 on the ACT and meet the other dual credit qualifications.

“It’s very hard to get kids today interested in a vocation even though they can go right to work out of high school in good-paying jobs. Machinists have always been paid well dating back to the Confederate War. A Confederate soldier earned $15 per month, but a gunsmith earned $275,” Knight said.

There are roughly 4,000 high school students enrolled in Rogers, and just 70 have sought out the career tech training offered by Knight.

“There is a lot of emphasis on Advanced Placement and college prep course work but there is also a bright future for those who have practical experience and go right to work and then continue on to college with no or little debt,” Knight said.

Harvey agreed, saying that too many students leave college after two years with no real work skills and loads of debt. Those with practical machinist skills can work their way up to $25 per hour jobs and in some cases get their college degrees funded through employer reimbursement programs like NWA Graduate.

Harvey said Springdale, Siloam Springs, Pea Ridge and Rogers schools are some of those in the region working toward solutions to the workforce shortage.

CONCERNS AND SUCCESSES
The survey consensus also indicated some concern around public transportation. Harvey said Ozark Regional Transit is willing to work closely with cities and industries in need. He said Fayetteville was able to work out additional routes to and from its industrial park at the request of manufacturers who said they were experiencing higher turnover rates. The additional routes at various shift times have reduced turnover and absenteeism. 

The Bentonville-Bella Vista Chamber of Commerce heard from several companies having difficulty finding and recruiting qualified employees with “soft skills” – interpersonal and communication skills. In response the Chamber, reached out to local educators who now offer such training. 

The Fayetteville Chamber has used the survey to help with sustainable agendas of some of its local companies like BlueInGreen who was allowed to use the city’s treatment plant for a demonstration project. It also worked with Pinnacle Foods to help preserve an on-site rare habitat for Monarch butterflies.

The Springdale Chamber said it worked with two local firms to obtain additional incentives from the Arkansas Economic Development Commission and the state’s training funds.